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National Small Business Day

A US observance on May 10 recognizing the contributions of small businesses, which represent 99.9% of all American businesses and employ nearly half the private-sector workforce.

Monday

May 2027

Last updated March 18, 2026 · by the Holiday Calendar Team

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YEARLY DATEMay 10

OBSERVED INUnited States

CATEGORYBusiness

SUBCATEGORYEntrepreneurship

ORIGIN

Government Proclamation

FOUNDING ENTITY

U.S. Congress

FIRST OBSERVED

1980

HOW THE HOLIDAY CAME TO BE

National Small Business Day was recognized by the U.S. Congress in 1980, building on the Small Business Administration's National Small Business Week, which has been held annually since 1963.

INTRO

Introduction

PHOTO

Small businesses represent 99.9% of all businesses in the United States. That is not a rounding error. Of the 36.2 million businesses operating in America as of 2025, all but a few thousand qualify as small under SBA definitions. Together, they employ 62.3 million people, nearly half the private-sector workforce, and contribute 43.5% of GDP.

National Small Business Day, observed on May 10, was recognized by U.S. Congress in 1980. It grew out of the SBA's National Small Business Week, which has been held annually since 1963. In 2023, a record 5.5 million new businesses were started in the United States.

ORIGINS

Small Business Day history

INTRODUCTION

The federal government's involvement with small business began during the Great Depression. In 1932, President Herbert Hoover established the Reconstruction Finance Corporation to provide emergency lending to struggling banks and businesses. During World War II, the Smaller War Plants Corporation was created in 1942 to ensure small manufacturers received a share of military contracts. After the war, the Small Defense Plants Administration followed in 1951.

These agencies converged when President Dwight Eisenhower signed the Small Business Act on July 30, 1953, creating the Small Business Administration. The law stated the agency's mission: to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns." The SBA's 7(a) loan program, still its primary lending vehicle, launched the same year.

CHAPTER 01

From agency to observance

In 1963, the SBA established National Small Business Week, an annual recognition of the sector's contributions. In 1980, the U.S. Congress went further, officially recognizing May 10 as National Small Business Day. The fixed date gave the celebration a permanent anchor alongside the variable dates of the week-long event.

CHAPTER 02

What counts as small

The SBA defines "small" by industry. For most manufacturing sectors, it means fewer than 500 employees. For most service industries, it means annual revenue below specific thresholds. Under these definitions, 99.9% of all American businesses qualify as small. As of 2025, that amounts to 36.2 million firms, 81.9% of which operate with no paid employees at all.

CHAPTER 03

The myth of the 50% failure rate

The widely repeated claim that half of all businesses fail in their first year is wrong. Bureau of Labor Statistics data shows that only 20.4% of businesses fail in their first year. Roughly 50.6% survive five years, and 34.7% survive a decade. The top two reasons for failure are no market need (42%) and running out of cash (38%).

CHAPTER 04

The post-pandemic surge

New business formation accelerated sharply during and after the COVID-19 pandemic. Americans started 5.5 million new businesses in 2023, the highest number ever recorded. In January 2025, the country recorded 21 million cumulative new business applications, also a record. The surge has been driven in part by workers who left traditional employment during the pandemic and by the expansion of e-commerce platforms that lowered the barriers to entry.

TIMELINE

National Small Business Day Timeline

Reconstruction Finance Corporation established

President Herbert Hoover created the RFC during the Great Depression to provide emergency lending to banks, railroads, and businesses. It became the first federal effort to financially support commercial enterprises and laid the groundwork for the SBA.

President Eisenhower signs the Small Business Act

The Small Business Administration was founded on July 30, 1953, with a mission to 'aid, counsel, assist and protect the interests of small business concerns.' The SBA's 7(a) loan program launched the same year.

First National Small Business Week

The SBA established National Small Business Week to recognize the contributions of small businesses. The annual event has been held continuously since, becoming the longest-running celebration of American entrepreneurship.

U.S. Congress recognizes National Small Business Day

Congress officially recognized May 10 as National Small Business Day, creating a fixed date to complement the variable dates of National Small Business Week.

Record 5.5 million new businesses started

The United States recorded 5.5 million new business applications in 2023, the highest number ever recorded, continuing a surge in entrepreneurship that began during the COVID-19 pandemic.

GET INVOLVED

How to Celebrate National Small Business Day

Shop at a local small business

The most direct way to observe National Small Business Day is to spend money at a local independent shop, restaurant, or service provider. Revenue spent at small businesses recirculates in the local economy at a higher rate than spending at national chains.

LEAVE

Leave a review for a small business you value

Online reviews are disproportionately important for small businesses, which lack the marketing budgets of large competitors. The SCORE small business resource center offers tips on how reviews impact local search ranking and customer acquisition.

EXPLORE

Explore SBA resources if you're considering starting a business

The Small Business Administration offers free counseling, loan programs, and market research tools. SCORE, an SBA partner, provides free mentorship from experienced business professionals.

Share a small business recommendation on social media

A social media post naming a specific small business and explaining what makes it worth visiting reaches potential customers that the business itself might not. Word-of-mouth remains the most effective form of advertising for businesses without marketing departments.

LEARN

Learn about the real failure rate

The commonly cited statistic that 50% of businesses fail in the first year is incorrect. Bureau of Labor Statistics data shows 79.6% of businesses survive their first year. Understanding the actual odds may encourage entrepreneurship.

WHY THIS DAY MATTERS

Why National Small Business Day is Important

Entrepreneurship is at a record high

The United States recorded 5.5 million new business starts in 2023, the highest number ever. The post-pandemic surge in entrepreneurship has continued into 2025, driven by e-commerce expansion and shifting attitudes toward traditional employment.

Small businesses create most new jobs

Between March 2023 and March 2024, small businesses created 88.9% of all net new jobs in the United States — 1.2 million out of 1.4 million. Since 1995, they have been responsible for 61.1% of all net new job creation in the country.

Nearly half the economy runs on small business

Small businesses employ 62.3 million Americans, representing 45.9% of the private-sector workforce. They contribute 43.5% of the nation's GDP and account for $2.9 trillion in annual payroll.

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