What is a small business in 2023?

The U.S. Small Business Administration (SBA) categorizes a small business as an enterprise with fewer than 500 employees. But we are interested in the smallest of small businesses: entities up to 10 employees.

Today, these entities, known as microbusinesses, take many forms, including side hustles and freelance work. They are the fastest-growing business segment in the U.S. and are vital to the nation’s economy.

To better understand the growing number of microbusinesses, we began this survey by asking how many adults are already running a small business, side hustle, or freelancing. And how many of them plan to do so in the future? This survey also looks at what motivates them. How much of their income comes from their microbusiness endeavor? And, finally, what small business advice, they have received over the years.

We surveyed:

• 1,085 adults
• Living in the U.S.
• 18-60 years of old

The survey was conducted online between October 4-6, 2023. Here is what we learned.

The rise in the number of Americans running a small business, doing a side hustle, or freelancing reflects the growing importance these microbusinesses play in our economy.^[1][2][3]

Not surprisingly, their primary motivation was to make more money. However, money is only one of their motivators. Learning a new skill was the second most important reason they do what they do.

They also revealed they’re hard workers, with 75% responding that, in addition to running a business, side hustle, or freelance work, they are also employees of another company.

This industrious group deserves more recognition and support. To that end, we’re committed to expanding resources to help microbusinesses meet the challenges they will inevitably face. Our goal is to improve their chances of success so that they can, in turn, continue to contribute to the U.S. economy and serve as inspiration for future generations.