There were almost 7.8 million private business establishments in the United States in 2002. The average size of these establishments varies widely across industries.
Most establishments in the construction, wholesale trade, retail trade, finance and insurance, real estate and rental and leasing, and professional, scientific, and technical services industries are small, averaging fewer than 15 employees per establishment. However, wide differences within industries can exist. Hospitals, for example, employ an average of 712.4 workers, while physicians' offices employ an average of 9.3. Similarly, although there is an average of 13.3 employees per establishment for all of retail trade, department stores employ an average of 166.5 people.
Business establishments in the United States are predominantly small; 59.6 percent of all establishments employed fewer than 5 workers in 2002. However, the medium-sized to large establishments employ a greater proportion of all workers. For example, establishments that employed 50 or more workers accounted for only 4.7 percent of all establishments, yet employed 57.4 percent of all workers. The large establishments - those with more than 500 workers - accounted for only 0.2 percent of all establishments, but employed 18.2 percent of all workers. Table 1 presents the percent distribution of employment according to establishment size.
Establishment size can play a role in the characteristics of each job. Large establishments generally offer workers greater occupational mobility and advancement potential, whereas small establishments may provide their employees with broader experience by requiring them to assume a wider range of responsibilities. Also, small establishments are distributed throughout the Nation; every locality has a few small businesses. Large establishments, in contrast, employ more workers and are less common, but they play a much more prominent role in the economies of the areas in which they are located.
Table 1. Percent distribution of establishments and employment in all private industries by establishment size, March 2002
| Establishment size (number of workers) |
Establishments | Employment |
| 1 to 4 | 59.6 | 6.6 |
| 5 to 9 | 16.9 | 8.2 |
| 10 to 19 | 11.1 | 10.9 |
| 20 to 49 | 7.7 | 17.0 |
| 50 to 99 | 2.6 | 13.3 |
| 100 to 249 | 1.5 | 16.4 |
| 250 to 499 | 0.4 | 9.5 |
| 500 to 999 | 0.1 | 7.0 |
| 1,000 or more | 0.1 | 11.2 |
Information courtesy of the U.S. Department of Labor.
