Small Business Week is from May 3rd to May 9th. Small businesses have an enormous impact on the U.S. economy. This week celebrates the hard work of entrepreneurs and small business owners in driving our economy forward. Women small business owners are a unique part of the entrepreneur population. 

To see how much you know about small businesses, let’s play “Two Truths and a Lie.”

A. Most businesses in the U.S. are small businesses. 

B. Small businesses have more women in upper management than large businesses.

C. Women-owned small businesses are a minuscule share of all small businesses.

A. TRUTH! 99% of U.S. businesses have fewer than 500 employees and are considered small. There are a total of 35 million small businesses that contribute 43.5% of the U.S. GDP. With such a large part of the U.S. economy fueled by independent entrepreneurs, it is crucial to recognize policies that support these businesses and enable them to flourish. 

B. TRUTH! According to a survey conducted by ADP Research, 20% of women employed at small businesses are in upper management. That is more than double the share of large businesses with women in leading roles (8%). Small businesses make it possible for more women to get ahead and feel connected at their company. They likely take on greater responsibilities and are exposed to many more aspects of a business in a small business setting. Also, women value flexibility in their work. A career in a small business or creating their own businesses often allows them to pursue other priorities while also building a career. 

C. LIE! Women-owned small businesses make up a third of all small businesses. Women own more than 12 million businesses and employ 11.4 million people. Women-owned businesses make up 22% of all businesses that have employees. That is no small share of the economy, especially considering they also bring in $2.1 trillion in receipts. 

Bottom line: 

Small businesses are a staple in their communities while contributing major value to the U.S. economy. Promoting balance and flexibility, entrepreneurs and small business owners are one of America’s best examples of how hard work can pay off. U.S. policy must protect these businesses and shape tax policy and regulations so that they can continue to thrive.

To learn more, visit the Center for Economic Opportunity.