Announcer: Ms. Tara Wolckenhauer has been Vice President of Human Resources at Accredo Health Group, Inc. since 2009. Ms. Wolckenhauer has served in a number of HR roles within the Medco organization since 2000. Prior to Accredo, she served as Senior Director of Human Resources at Medco. Ms. Wolckenhauer is a graduate of the University of Scranton in Scranton, Pennsylvania. Please welcome to Elevate 2015, Tara Wolckenhauer.
Tara: Welcome, Elevate participants. Today we'll discuss small business and its significant impact. Let's get started on our journey together. Thank you so much for this opportunity to be with you today. ADP is simply delighted to participate in Elevate 2015. What a fantastic event. Here's what we'll discuss in the brief time we have together. We'll talk a bit about me, about ADP, small business and its economics, and ADP's small business insights.
So a little bit about me. My name is Tara, and I'm the Divisional Vice President of Human Resources for our small business services division, which includes our retirement services and insured services business lines and our PEO and ASO business lines, which are represented by TotalSource resource and comprehensive services. I've been lucky to be in the field of human resources for close to 20 years with a variety of experience globally including mergers and acquisitions, strategy, and talent development.
Let's spend time getting to know ADP now. Today ADP proudly serves 625,000 business, and 50 million workers rely on us for benefits administration, payroll, taxes, and compliance. ADP is known around the world for payroll, but a growing number of our clients know us for far more than that. Take a look at our solutions on this slide. We give them the tools, not just to track their people, but to make them even better: our recruiting, compensation, and talent management tools, the software and unique data analytics we provide, and the power to shape a workforce matched to their business strategies and needs. It's a wonderful organization.
Although today we are a global company with approximately 52,000 associates working in 40 countries, our beginnings were very humble. Few know, but we began in 1949 as a small business in a tiny office above Greakers Ice Cream Parlor in Paterson, New Jersey. Today we serve over 425,000 small business clients, and at ADP, we define small business as having fewer than 49 employees. And nearly 300,000 of our small business clients have fewer than even 10 employees. Small business is in our DNA. We understand and appreciate their needs.
Let's take a look at some small business economics. To understand scale, let's look at the U.S. government's numbers around the small business sector. As you can see, there are approximately 28 million small businesses in the United States. But did you know not all of them have employees? In fact, about 23 million of them are non-employers, or what we call sole proprietors. So to keep it simple, let’s say there are about 5 million small businesses with employees.
The U.S. Business Administration and the Bureau of Labor Statistics are rich sources of data about small businesses. Let’s look at some of their figures. As you can see, of all the companies with employees, 99.7% of them are small businesses. The U.S. government defines a small business as having fewer than 500 employees. But not only that, small businesses create nearly two thirds of net new jobs and contribute just over half of the U.S. gross domestic product. One fact I find very interesting is that almost half the people who are employed in the United States work at small companies.
In this next slide, it's really interesting to see the range of small business ownership. By looking at the graphs, you can see that 36% of small businesses are women-owned, with 15% minority owned, and 9.1% veteran owned. Did you know that more than half are home-based businesses, and more than a quarter are family-owned businesses? These dynamics are quite fascinating in the small business space. Many people often ask us, "About how many new businesses start each year?" And we found out that according to these government figures, about 742,000 employer births occur every year. Can you imagine 742,000 new businesses entering the market each year?
Here's another view into small business economics. Let's look at the segmentation above. You can take a look at those numbers and see that more employees work on the smaller end of small businesses, and that's with less than 19 or so employees. The larger end of small businesses, again, as defined by the U.S. government has both fewer employees working in them and less businesses established.