SBE Council Celebrates National Small Business Week: Entrepreneurs Are Driving Growth, Innovation, and America’s Future

By SBE Council at 4 May, 2026, 10:15 am

NEWS
For Immediate Release

Washington, D.C. - The Small Business & Entrepreneurship Council (SBE Council) is kicking off National Small Business Week (May 4-9) by reminding lawmakers, policy leaders, and the public about the importance of America's entrepreneurs to U.S. economic growth and innovation. Just as entrepreneurs have been doing since the founding of our nation 250 years ago, their innovative spirit, resilient character, and risk-taking are powering America's economy forward.

"National Small Business Week is a time to honor the entrepreneurs who take risks and innovate, and keep America's economy vibrant and resilient," said Karen Kerrigan, President & CEO of SBE Council. "From the nation's founding to the current period, the energy and passion of America's entrepreneurs drive prosperity and opportunity. They keep our national economy competitive, and therefore policies must continue to support entrepreneurial activity and small business growth."

America's small business economy is vast and mighty. Consider the numbers:

● There are 36.8 million small businesses in the United States.

● Including nonemployers, 96.4% have fewer than 10 workers and 99.7% have fewer than 100 employees.

● Small businesses account for 43.5% of gross domestic product and employ 45.9% of the private sector workforce, or 62.3 million people.

● From January 1995 to December 2024, small businesses created 20.7 million net new jobs, accounting for 61% of net new job creation over that period.

● Based on 2025 data, between 5.1 million to 5.8 million new business applications were filed in the U.S. last year (5.2 million were filed in 2024). This high-volume trend in entrepreneurial intent is a very positive sign for America's economic future.

Kerrigan observed: "Entrepreneurs are operating in a fast-changing and challenging economy, and they are meeting the moment. They are embracing and adopting new technologies, investing in growth, and benefiting from recently enacted tax relief to strengthen cash flow and investment. The regulatory environment is improving, as the Trump Administration continues to modernize and fix regulatory excesses and obsolete rules."

Kerrigan added that while key policy accomplishments are boosting entrepreneurship and small business resiliency, the work must continue in several areas.

"Congress and leaders across government must build on this progress by finalizing a range of policies in the pipeline that will strengthen growth and investment. The U.S. House, for example, has advanced bills that address key small-business pain points - such as high health coverage costs and the need for access to capital. The Senate must prioritize these efforts to help small businesses grow and operate in uncertain conditions. We are pleased to see that federal agencies and Congress are addressing important provisions in President Trump's Great Healthcare Plan that shift more power and decision-making to consumers and patients, strengthen market-based competition, improve transparency, and include PBM changes that benefit patients, employers and independent pharmacies."

Tax Relief is Strengthening Small Business Confidence and Competitiveness

During National Small Business Week last year, SBE Council urged Congress to make permanent the pro-growth provisions of the 2017 Tax Cuts and Jobs Act. Thanks to the leadership of President Trump, Speaker Mike Johnson, Senate Majority Leader John Thune, House Ways and Means Committee Chairman Jason Smith, and Senate Finance Committee Chairman Mike Crapo, and Republican lawmakers in Congress, that goal was achieved through passage of the Working Families Tax Cuts Act (One Big Beautiful Bill).

President Trump signed this legislation into law in July 2025, which is delivering results for entrepreneurs and small businesses. Key provisionsinclude the permanent 20% small business deduction, permanent lower individual tax rates, restoration of 100% bonus depreciation, immediate R&D expensing, expanded Section 179 expensing, a higher death tax exemption, and reversal of the overly broad 1099-K reporting rule, among other positive reforms.

In SBE Council's most recent poll, 61% of small business owners noted that their businesses are already experiencing positive cash-flow effects from the tax cuts, and 73% anticipate the tax provisions will positively impact their businesses throughout 2026 via improved cash flow, stronger financial stability, and enhanced business competitiveness.

"Permanency and incentives matter," said Kerrigan. "Small business owners need predictability to invest, hire, expand, and take risks. The Working Families Tax Cuts Act is providing entrepreneurs with certainty and new resources that strengthen their capacity and help them compete in a challenging economy."

Kerrigan said she is pleased to see that members of Congress are pushing relief and incentives further, for example, through Representatives David Kustoff's (R-TN) "Small Business Tax Cut Act," which raises the small business deduction from 20% to 23% and Senator Marsha Blackburn's (R-TN) "American Innovation Act" that increases the amount that start-up entrepreneurs can deduct in their first year of operation.

Small Businesses Are Rapidly Expanding Tech and AI Adoption

This year's National Small Business Week also comes at a time when small businesses are rapidly embracing digital tools, artificial intelligence (AI), and online platforms to improve productivity, reach customers, grow revenue, and compete more effectively.

SBE Council's Small Business Technology Use Survey (March 2026) found that 82% of small business employers are investing in AI tools - the typical small business now uses five different tools across operations. The survey found that 66% report revenue increases linked to AI, owners save a median five hours per week, and businesses save a median 11.5 employee hours per week. SBE Council estimates those time savings amount to $243.6 billion annually.

The survey also found that 81% of small business owners report AI is important to their competitiveness and growth, while 93% plan to keep making investments in AI over the next year, including 62% who plan to increase investments.

"These findings confirm that AI and digital tools are powerful equalizers for small businesses," said Kerrigan. "Entrepreneurs are using these technologies to save time, lower costs, innovate faster, reach customers, and compete with larger firms. Policymakers must not undermine these gains through fragmented, heavy-handed or overly prescriptive rules."

Advancing a National, Pro-Innovation AI Framework

SBE Council continues to urge Congress and the Trump administration to advance a national AI policy framework that protects innovation, avoids a costly patchwork of state and local regulation, and ensures that small businesses can continue to benefit from affordable and accessible AI tools.

SBE Council welcomed, for example, the White House's national AI legislative framework, which prioritizes innovation, economic growth, and a unified federal approach to governance. At a time when more than 1,500 AI-related bills have been introduced at the state and local levels, SBE Council has warned that fragmented regulation would raise compliance costs, slow adoption, and cut small businesses off from technologies that are helping them grow and compete.

A Pro-Entrepreneur Agenda for America's Future

During National Small Business Week, SBE Council is urging lawmakers and policy leaders to keep entrepreneurs front and center. Kerrigan concluded:

"Tax relief is working, regulatory clarity is increasing certainty, technology is empowering small businesses, and market-driven reforms can help to address major cost pressures for small businesses such as healthcare. America remains the best place in the world to start and grow a business, but that global position hinges on policies that reward risk-taking, support innovation, expand opportunity, and allow entrepreneurs to compete and thrive."

CONTACT: Karen Kerrigan, [email protected]

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. X: @SBECouncil

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