Small businesses are the backbone of the American economy, accounting for 99.9% of all US businesses and employing nearly 60 million people, which represents 45.9% of the private workforce.
Moreover, in the past few years, there has been a record surge in entrepreneurship. As we navigate the complexities of the current economic landscape, it is imperative to recognize the transformative role that private equity (PE) can play in bolstering this critical sector.
As of 2025, PE firms have invested in over 21,000 businesses, with previous AIC research finding 85% of these investments directed toward companies with fewer than 500 employees. These strategic partnerships have infused capital into local enterprises and facilitated job creation, operational enhancements, and long-term growth.
