Key points
- Smaller businesses tend to have higher rates of injuries and illness than larger businesses.
- When compared to larger businesses, small businesses often face a lack of resources for safety and health practices, place greater time demands on managers, and have fewer employees to engage in activities such as safety committees.
Overview
In 2021, there were approximately 6.3 million businesses in the United States with employees, according to the U.S. Census Bureau. In regard to small businesses
- 33% of the U.S. workforce is in a firm with < 100 employees.
- 90% of U.S. businesses have < 20 employees and
- 80% of U.S. businesses have < 10 employees
The definition of a “small” business varies widely, particularly as it relates to workplace safety and health. The characteristics that distinguish a smaller business from a larger one in terms of occupational safety and health include not only number of employees but also the structure (including sole proprietorships), the age of the business (most new businesses are small), and a manager-centered culture (the owner/operator sets the culture of the business). Despite the stereotype of a small business as a small town retail or service firm, some smaller businesses do not fit the stereotype, e.g., high-tech manufacturing startups.
For most occupational safety and health research purposes, the NIOSH Small Business Assistance Program considers small businesses as having fewer than 50 employees. This number is consistent with European Union criteria for defining small enterprises, as well as the Affordable Care Act cutoff for requiring employers to provide health insurance to employees.
Small business challenges
Risky economic environment
Small Businesses struggle to exist in a risky economic environment. Market forces, structural changes, and emerging social and business climate threats may affect levels of resources available for occupational safety and health initiatives for small businesses.
While two-thirds of new small businesses survive at least 2 years, only 44% survive at least 4 years. These numbers are consistent across sectors. One research team found that businesses that lasted five years had less than half the annual workplace injury rate as businesses that lasted only two years.
Financial limitations
Financial limitations are frequently cited by small business owners as a barrier to implementing recommended health and safety programs. Other issues frequently take precedence when small businesses survive on the edge of viability. For example, according to a National Federation of Independent Business membership survey, the number one small business issue is the cost and availability of insurance.
Small business assistance program
The Small Business Assistance (SBA) research program focuses on conducting research to better prevent injuries, illnesses, and deaths in small businesses and increasing awareness and use of effective interventions among small businesses.
Selected reports
NIOSH Science Blogs
NIOSH Science Blogs on Small Business - The NIOSH Science Blogs contain information on small business information, programs, and resources.
Database
Worker Injury and Illness Average Incidence Rates by Industry and Establishment Size - The U.S. Bureau of Labor Statistics updates data annually.
Journal Articles
NIOSHTIC-2 Search Results on Small Business - Searchable bibliographic database of occupational safety and health publications, documents, grant reports, and journal articles supported in whole or in part by NIOSH.
Brown CE, Cunningham TR, Newman LS, Schulte PA (Eds.). (2018). Special Issue on the “Understanding Small Enterprises” USE Conference 2017. Annals of Work Exposures and Health, 62(1).
Schwatka NV, Tenney L, Dally MJ, Scott J, Brown CE, Weitzenkamp D, Shore E, and Newman LS. (2018). Small business Total Worker Health: a conceptual and methodological approach to facilitating organizational change. Occupational Health Science, 2(1), 25-41.
Cunningham TR, Guerin RJ, Keller BM, Flynn MA, Salgado C, and Hudson D. (2018). Differences in safety training among smaller and larger construction firms with non-native workers: evidence of overlapping vulnerabilities. Safety Science, 103, 62-69.
Keller BM and Cunningham TR. (2016). Firefighters as distributors of workplace safety and health information to small businesses. Safety Science, 87: 87-91.
Cunningham TR and Sinclair R. (2015). Application of a model for delivering occupational safety and health to smaller businesses: Case studies from the US. Safety Science, 71(C): 213-225.
Cunningham TR, Sinclair R, and Schulte P. (2014). Better understanding the small business construct to advance research on delivering workplace health and safety. Small Enterprise Research, 21(2).
Sinclair RC and Cunningham TR. (2014). Safety activities in small businesses. Safety Science, 64: 32-38.
Wurzelbacher S J, Bertke SJ, Lampl MP, Bushnell PT, Meyers AR, Robins DC and Al-Tarawneh IS. (2014). The effectiveness of insurer-supported safety and health engineering controls in reducing workers’ compensation claims and costs. Am. J. Ind. Med., 57: 1398–1412.
Sinclair RC, Cunningham TR and Schulte PA. (2013). A model for occupational safety and health intervention diffusion to small businesses. Am. J. Ind. Med., 56: 1442–1451.