As of 2019, small business makes up 44 percent of US GDP. From 1998 til 2019, the percentage has gone from 48 to 44 percent. Over the past I suspect 2020 is going to see small business percentage of GDP go further down. As the COVID lockdown took its toll on small business, the companies already chipping away small businesses grew more dominant.
In some ways, the stellar performance of the stock market is reflective of this shift away from small business. After all, the stock market is made up of companies large enough to get listed. There are many dynamics that drive the apparent trend of decreasing numbers of small business. Putting aside tech startups which seem to skip right past small business stage and jump right to unicorn status, small business provides the opportunity for the average person to potentially make it big, support the local community, provide jobs, and generate new ideas that impact society. Historically, Americans seem to find a way to build a better mouse trap and create a business around it. I hope that American ingenuity and entrepreneurship can reverse the fortunes of small business after a disastrous year in 2020. Who knows what the futures holds in a country dominated by big business.