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A small business is defined as a corporation, partnership, or sole proprietorship with fewer than 100 employees. They make less money per year than a regular-sized business. Here are the characteristics of small businesses. These businesses contribute to the U.S. economy in a variety of ways. Read on to learn more. Listed below are some helpful resources for small businesses. Here are some of the most important ones: Contribution of small businesses to the U.S. economy Small businesses create almost half of new jobs in the United States and account for nearly four-fifths of all private sector employment. Among them, eight million people work for 600,000 or more franchised small businesses. They generate over $5 trillion in gross domestic product yearly. And, according to the U.S. Small Business Administration, small businesses create nearly half of net new jobs. Small businesses employ nearly half of all Americans, and they account for nearly half of the U.S. economy. According to the Small Business Administration, small businesses create more jobs than any other sector. Since mid-2009, small businesses have created 60% of new jobs. And, in addition to creating new jobs, small firms have helped create millions of jobs. They also provide many good jobs, with a high level of satisfaction. This may be why small businesses are so critical to the economy. Small businesses contribute to the growth of jobs, but they may not be the driving force behind it. Small businesses contribute to the economy by purchasing goods produced by other businesses, contributing to the GDP and the stock market. As a result, a growing U.S. economy boosts the earnings of all businesses, which in turn helps the stock market. Small businesses also contribute to the identity of their communities. They sponsor local teams, participate in charitable events, and donate to charities. Small businesses make America more vibrant and thriving. Many small businesses create jobs for local residents and contribute to the economy at large. Not only do these companies help local merchants, they also contribute to local charities and reduce carbon emissions. Small businesses often focus on their customers and the community, and are more responsive to community needs than large companies. In addition to these benefits, small businesses contribute to local economies. Thatҳ why small businesses are so vital to the U.S. economy. According to the U.S. Bureau of Economic Statistics, small businesses account for roughly four-fifths of the nationҳ total GDP. Small businesses make up 80 percent of the construction, real estate, and information industries. Despite their relatively small size, they are responsible for nearly half of the countryҳ net new jobs. Small businesses employ about two-thirds of all U.S. workers, according to the Census Bureau. In addition to contributing to the economy, small businesses foster innovation. 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