Small businesses are doing more than just keeping the economy afloat; they’re driving it forward.
What’s Related
According to new data from Supplier.io, major corporations spent $122.7 billion with small businesses in 2024. That spending generated $202.7 billion in total economic output and supported 828,000 U.S. jobs.
“Every dollar spent with small businesses generated $1.65 in total economic output,” said Neeraj Shah, CEO of Supplier.io. “This multiplier effect shows that small business spending isn’t just good for suppliers — it’s good for everyone.”
Leading industries
The biggest job gains came from professional and scientific services, construction, and administrative support, three sectors that play a major role in supply chain performance and infrastructure.
Construction spending, in particular, has been boosted by factory and warehouse projects, while professional services include many engineering, technology, and logistics firms supporting those efforts. Administrative support, meanwhile, covers the staffing, transportation coordination, and back-office work that keep supply chains running smoothly.
Together, these industries show how small suppliers connect directly to the country’s logistics network and manufacturing base.
Top states for small business impact
Supplier.io’s analysis also highlights where small business sourcing delivers the biggest punch. California, Texas, Pennsylvania, Illinois, and Florida led the nation in total economic impact.
That list isn’t a surprise as all five states are major freight and manufacturing hubs with deep port, rail, and distribution infrastructure. Their concentration of small suppliers helps big companies stay nimble when global disruptions hit.
A broader supply chain strategy
Supplier.io’s findings come as companies rethink their sourcing mix amid shifting tariffs and transportation costs. Many are looking closer to home for stability, and small business partnerships are proving to be a powerful part of that strategy.
“Small businesses play an essential role in the American economy,” Shah said. “Their innovation and flexibility help companies stay resilient when challenges arise.”
