The latest quarterly data from the Small Business Index shows US small business employment fell by 433,500 jobs (-3.53%) in the first quarter of 2025. Quarterly revenue grew by 0.03% in Q1-2025, on average, to $151,110 per business. While revenue remains above the pre-pandemic level recorded in Q1-2020, it has trended downward since Q2-2021, when quarterly revenue peaked at $173,070.
All data is seasonally-adjusted. Revenue data is also adjusted for inflation (shown in 2017 dollars).
All 12 sectors included in the Index show declines in small business employment in Q1-2025 (see table below for details). The education and health services sector (NAICS 61-62) had the largest quarterly decline of all 12 sectors in Q1-2025. This contrasts with recent U.S. Bureau of Labor statistics data, which shows overall employment in the sector grew by 199,000 jobs in Q1-2025—indicating jobs moved to larger businesses over this period.
Despite the recent decline in small business employment, average quarterly revenue in the sector increased by $620 per business in Q1-2025, to $96,460. Use the purple button on the table below to see the revenue data.
As the table above shows (use the purple button), small businesses in the professional and business services sector (NAICS 54-56) had the largest increase in average quarterly revenue in Q1-2025, rising to $106,370 per business. The latest data from the U.S. Bureau of Economic Analysis is currently only available through the end of 2024 but shows the inflation-adjusted value of the sector’s gross domestic product (real GDP) increased by 1.7% in Q4-2024.
Small businesses in the wholesale trade sector (NAICS 42) had the largest decline in average quarterly revenue in Q1-2025, falling to $606,860 per business. Similarly, the latest available data from the U.S. Bureau of Economic Analysis shows the sector’s real GDP declined by 0.21% in Q4-2024.
Small business employment declined in all eight US regions in Q1-2025—see the table below for details. The Southeast region (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia) had the largest decline—leaving 3,024,000 people employed at the region’s small businesses. Over the same period, however, average quarterly revenue increased by $1,050 to $144,950 per business.
The Far West region (Alaska, California, Hawaii, Nevada, Oregon, Washington) had the largest quarterly increase in small businesses revenue. Use the purple button on the table below to see the revenue data.
All 20 states currently included in the Index had declining small business employment in Q1-2025. As the table below shows, states with the largest populations had the largest share of the jobs lost. For example, small business employment in California declined by 55,700 jobs, the largest decline recorded among 20 states in Q1-2025. This contrasts with the latest available employment data from California, which shows overall employment increased by 27,700 jobs from December to February—indicating jobs moved to larger businesses over that period.
The news is again more positive for small business revenue, which increased in 13 states in Q1-2025, including California. Florida had the largest increase, with average quarterly revenue now at $138,020 per business. Similarly, the latest available GDP data from Florida shows an increase of 1.2% in Q4-2024. Use the purple button on the table below to see revenue data.
Methodology: For more information about the sample, data sources, and calculations used in the Small Business Index, read the full methodology here.
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