U.S. Small Business Employment and Revenue Trends in 24–25

The recent findings from Intuit’s QuickBooks Small Business Index Annual Report provide an in-depth look at the challenges and opportunities faced by small businesses in the United States throughout 2024. With significant declines in employment and revenue, the report sheds light on the key factors influencing these trends, including high interest rates, access to credit, and the adoption of digital tools.

Decline in Small Business Employment and Revenue

Employment Trends

According to the 2025 Intuit QuickBooks Small Business Index Annual Report, U.S. small business employment saw its largest year-over-year decline since 2015. Between October 2023 and October 2024, small business employment dropped by 51,200 jobs, with the leisure and hospitality industries being the hardest hit. This decline highlights a shift in job growth from small to larger businesses, affecting various sectors across the country.

Regional Impact

The decline in employment was not uniform across all regions. Of the eight U.S. regions analyzed, four reported significant job losses. A detailed examination reveals that most job losses occurred between October 2023 and January 2024, with a gradual recovery observed in subsequent months. Notably, the construction sector, which initially lost 13,100 jobs, managed to create 11,400 new positions in 2024, indicating signs of resilience and recovery.

Revenue Trends

In addition to employment, small business revenue also experienced a substantial decline. On average, small businesses saw a decrease of $11,850 in revenue over the past year. This marked the third consecutive year of revenue decline, further emphasizing the financial strain faced by small businesses during this period.