Overview: The U.S. service sector comprises the vast majority of all businesses. According to the most recent comprehensive data (data year 2021, published 2023–2024), the United States had on the order of 26–27 million service-based business firms (including employer and nonemployer firms of all sizes). This represents businesses across all service industries – e.g., healthcare, professional and technical services, repair and maintenance, education, arts and entertainment, hospitality (accommodation and food services), personal services, finance, real estate, etc. – and accounts for roughly 80–85% of all U.S. businesses.
Notably, nonemployer firms (mostly sole proprietorships with no paid employees) constitute the bulk of these service businesses – about 28.5 million nonemployer firms across all industries in 2021 – while employer firms (those with at least one paid employee) make up roughly 6 million of the total. In the context of small businesses (as defined by the U.S. Small Business Administration as independent firms with fewer than 500 employees), these account for 99.9% of all U.S. businesses.
The table below provides a breakdown of the number of U.S. business firms in major service industry categories, using the latest available data (2021) which combines employer and nonemployer firms. All business sizes are included. (Nonemployer firms are counted as “businesses” in the industry of their primary activity.)
| Service Industry (NAICS sector) | Number of U.S. Businesses (2021) |
|---|---|
| Professional, Scientific & Technical Services – e.g. legal, accounting, consulting, design, advertising, etc. | 4,688,321[Source: SBA, p.2 Table] |
| Other Services (except Public Administration) – personal services, repair and maintenance, membership organizations, etc. (includes salons, auto repair, charities) | 3,651,673[Source: SBA, p.2 Table] |
| Transportation & Warehousing – passenger and freight transport, couriers, warehousing, etc. | 3,822,271[Source: SBA, p.2 Table] |
| Real Estate & Rental and Leasing – real estate agents, property leasing, equipment rental, etc. | 3,430,500[Source: SBA, p.2 Table] |
| Administrative, Support & Waste Management Services – office support, employment services, travel agencies, security, janitorial, waste collection, etc. | 2,974,150[Source: SBA, p.2 Table] |
| Health Care & Social Assistance – doctors’ offices, hospitals, nursing care, social services, daycare, etc. | 2,802,509[Source: SBA, p.2 Table] |
| Arts, Entertainment & Recreation – theaters, creative arts, spectator sports, gyms, amusement, museums, etc. | 1,655,660[Source: SBA, p.2 Table] |
| Accommodation & Food Services (Hospitality) – restaurants, bars, hotels, lodging, catering, etc. | 1,126,519[Source: SBA, p.2 Table] |
| Finance & Insurance – banks, credit institutions, investment firms, insurance carriers and agencies, etc. | 1,004,486[Source: SBA, p.2 Table] |
| Educational Services – private schools, colleges, tutoring, training centers, etc. | 913,699[Source: SBA, p.2 Table] |
| Information – publishing, motion pictures, broadcasting, telecom, data processing, internet services, etc. | 474,499[Source: SBA, p.3 Table] |
| Utilities – electric power, water, and gas utilities (private) | 21,355[Source: SBA, p.3 Table] |
| Management of Companies & Enterprises – holding companies, corporate management offices | 18,559[Source: SBA, p.3 Table] |
Data Collection: The figures above are derived from official U.S. Census Bureau programs:
Combined Reporting: The Census Bureau now publishes a combined report merging CBP (employer) and NES (nonemployer) data to provide a complete view of total business counts by industry. For example, in Professional & Technical Services, approximately 3.83 million nonemployer firms are combined with roughly 0.86 million employer firms to yield ~4.69 million total firms.
Additional Source: The U.S. Small Business Administration (SBA) Office of Advocacy’s 2024 Small Business Profile: United States provides detailed tables and methodology on small business counts by size and industry. (For example, see page 2 for “Small business count by size and industry”.)
Note: The above totals reflect data for 2021. Early indicators suggest continued growth in new business formations through 2022–2023. Future updates will be available as new data is released.