How does your business revenue stack up against competitors in your industry?
From February 2024 through March 2026, our research team compiled and analyzed revenue data from 36.2 million small businesses operating across the United States.
This comprehensive study examined businesses with fewer than 500 employees spanning 18 major industry sectors, drawing from data provided by the U.S. Small Business Administration, Bureau of Labor Statistics, Census Bureau, and proprietary industry benchmarking sources.
The following report presents updated benchmarks for small business revenue by industry, broken down by:
- Average annual revenue across major industry categories
- Revenue distribution patterns within each sector
- Profit margin benchmarks by industry
- Revenue per employee metrics by sector
- Year-over-year revenue growth trends (2023–2025)
This analysis provides business owners, investors, and industry stakeholders with actionable financial benchmarks for strategic planning, performance evaluation, and market positioning. Understanding where your business stands relative to industry peers enables more informed decisions about pricing, staffing, expansion, and operational efficiency.
1. Average Small Business Revenue by Major Industry (2026)
The financial performance of small businesses varies dramatically by industry sector. The table below presents the most current data on average annual revenue, total businesses in each sector, average employment, and revenue per employee across the 18 largest industries for American small businesses.
Industry revenue benchmarks: Annual revenue, business counts, staffing, and productivity
Average Small Business Revenue by Major Industry: 2026
| Industry | Average Annual Revenue | Number of Small Businesses | Average Employees | Revenue per Employee |
|---|---|---|---|---|
| Financial Services | $1,890,000 | 1,076,642 | 8.2 | $230,488 |
| Technology & IT Services | $1,745,000 | 500,000 | 11.4 | $153,070 |
| Healthcare & Social Assistance | $1,580,000 | 2,723,766 | 7.3 | $216,438 |
| Professional Services | $1,420,000 | 4,594,752 | 6.8 | $208,824 |
| Manufacturing | $1,350,000 | 603,348 | 8.1 | $166,667 |
| Construction | $1,150,000 | 3,483,077 | 6.5 | $176,923 |
| Wholesale Trade | $980,000 | 675,837 | 7.9 | $124,051 |
| Real Estate | $875,000 | 3,268,764 | 4.2 | $208,333 |
| Transportation & Warehousing | $720,000 | 3,051,341 | 6.1 | $118,033 |
| Retail Trade | $620,000 | 2,734,304 | 5.4 | $114,815 |
| Food Services & Accommodation | $540,000 | 1,048,567 | 9.8 | $55,102 |
| Administrative & Support Services | $485,000 | 2,946,753 | 5.2 | $93,269 |
| Arts, Entertainment & Recreation | $395,000 | 1,700,200 | 4.7 | $84,043 |
| Educational Services | $365,000 | 990,473 | 5.9 | $61,864 |
| Information Services | $1,680,000 | 445,353 | 11.2 | $150,000 |
| Agriculture | $680,000 | 277,390 | 9.4 | $72,340 |
| Mining & Extraction | $1,120,000 | 97,122 | 8.7 | $128,736 |
| Utilities | $2,150,000 | 20,176 | 14.3 | $150,350 |
Key Insights: Financial services leads all sectors with an average annual revenue of $1,890,000, driven by high-margin products, recurring fee structures, and relatively low overhead costs compared to asset-intensive industries.
Technology and IT services rank second at $1,745,000 average revenue, reflecting sustained demand for digital transformation, cybersecurity, cloud services, and software development across all business sectors.
Food services and accommodation generate the lowest average revenue at $540,000 despite employing more workers on average (9.8 employees), highlighting the labor-intensive, lower-margin nature of the restaurant and hospitality industry.
2. Small Business Revenue Distribution by Industry Segment (2026)
While average revenue provides a useful benchmark, the distribution of businesses across revenue ranges reveals more nuanced performance patterns. This table breaks down the percentage of small businesses in each major industry by annual revenue bracket.
Revenue distribution patterns: Share of businesses by annual revenue band
Small Business Revenue Distribution by Industry Segment: 2026
| Industry | <$50K (%) | $50K–$250K (%) | $250K–$500K (%) | $500K–$1M (%) | $1M–$5M (%) | >$5M (%) |
|---|---|---|---|---|---|---|
| Professional Services | 28% | 24% | 18% | 15% | 12% | 3% |
| Healthcare & Social Assistance | 22% | 21% | 19% | 17% | 16% | 5% |
| Retail Trade | 35% | 26% | 17% | 12% | 8% | 2% |
| Food Services & Accommodation | 31% | 29% | 20% | 13% | 6% | 1% |
| Construction | 26% | 23% | 19% | 16% | 13% | 3% |
| Manufacturing | 19% | 18% | 17% | 19% | 21% | 6% |
| Technology & IT Services | 24% | 20% | 16% | 17% | 18% | 5% |
| Financial Services | 21% | 19% | 16% | 18% | 20% | 6% |
| Transportation & Warehousing | 38% | 27% | 16% | 11% | 7% | 1% |
| Real Estate | 42% | 24% | 14% | 10% | 8% | 2% |
| Administrative Services | 39% | 28% | 17% | 10% | 5% | 1% |
| Arts & Entertainment | 44% | 26% | 15% | 9% | 5% | 1% |
Key Insights: Manufacturing and financial services show the healthiest revenue distribution, with 21% and 20% of businesses, respectively, generating between $1M–$5M annually, indicating stronger scalability and higher revenue ceilings in these sectors.
Arts, entertainment, and real estate have the highest concentration of micro-revenue businesses, with 44% and 42%, respectively, earning under $50,000 annually, reflecting the prevalence of part-time operators, freelancers, and side businesses in these industries.
Healthcare demonstrates balanced distribution across revenue tiers, with relatively even percentages from $50K to $1M, suggesting diverse business models ranging from solo practitioners to multi-provider clinics and specialized service centers.
3. Profit Margin Benchmarks by Industry for Small Businesses (2026)
Revenue alone doesn’t determine business success. Profit margins reveal how efficiently businesses convert sales into actual profit. The table below shows average gross and net profit margins across major small business industries, alongside typical operating expenses as a percentage of revenue.
Profitability benchmarks: Gross margin, net margin, operating expense load, and average net income
Profit Margin Benchmarks by Industry for Small Businesses: 2026
| Industry | Gross Profit Margin | Net Profit Margin | Operating Expenses (% of Revenue) | Avg. Net Income |
|---|---|---|---|---|
| Software & Technology Services | 71.5% | 19.1% | 52.4% | $333,395 |
| Financial Services | 66.0% | 15.4% | 50.6% | $291,060 |
| Professional Services (Legal, Accounting) | 58.3% | 14.2% | 44.1% | $201,640 |
| Real Estate Services | 46.7% | 16.9% | 29.8% | $147,875 |
| Healthcare Services | 36.0% | 5.1% | 30.9% | $80,580 |
| Retail Trade | 30.9% | 3.1% | 27.8% | $19,220 |
| Restaurant/Food Services | 32.4% | 10.7% | 21.7% | $57,780 |
| Construction | 24.9% | 10.2% | 14.7% | $117,300 |
| Manufacturing | 33.1% | 10.9% | 22.2% | $147,150 |
| Transportation & Logistics | 25.1% | 6.0% | 19.1% | $43,200 |
| Wholesale Trade | 32.3% | 7.6% | 24.7% | $74,480 |
| Agriculture & Farming | 16.5% | 7.1% | 9.4% | $48,280 |
Key Insights: Software and technology services command the highest margins at 71.5% gross and 19.1% net, benefiting from low cost of goods sold, scalable digital products, and recurring revenue models that require minimal incremental cost per new customer.
Agriculture shows the lowest gross margins at just 16.5%, reflecting commodity pricing pressures, high input costs for seeds and equipment, weather-related risks, and limited pricing power in competitive agricultural markets.
Construction demonstrates strong net profit margins (10.2%) despite modest gross margins (24.9%), indicating effective project management, lean operations, and disciplined cost control in a traditionally competitive industry where many contractors struggle with profitability.
4. Revenue Per Employee by Industry (2026)
Revenue per employee measures operational efficiency and indicates how effectively businesses leverage their workforce. This metric varies significantly across industries based on automation levels, capital intensity, service delivery models, and value proposition.
Workforce productivity benchmarks: Revenue efficiency, industry medians, top quartile output, and labor cost burden
Revenue Per Employee by Industry: 2026
| Industry | Revenue per Employee | Industry Median | Top Quartile Benchmark | Labor Cost as % of Revenue |
|---|---|---|---|---|
| Financial Services (Banking, Investment) | $378,230 | $285,000 | $520,000 | 32% |
| Software & IT Services | $158,000 | $142,000 | $245,000 | 45% |
| Oil & Gas Production | $870,107 | $625,000 | $1,240,000 | 18% |
| Real Estate Development | $1,417,221 | $890,000 | $2,100,000 | 15% |
| Healthcare Services | $209,644 | $180,000 | $295,000 | 52% |
| Professional Services | $208,824 | $165,000 | $310,000 | 48% |
| Manufacturing | $196,181 | $175,000 | $270,000 | 38% |
| Construction | $176,923 | $155,000 | $245,000 | 42% |
| Wholesale Trade | $148,007 | $130,000 | $195,000 | 35% |
| Retail Trade | $114,815 | $98,000 | $160,000 | 41% |
| Transportation & Warehousing | $118,033 | $105,000 | $155,000 | 47% |
| Food Services & Accommodation | $32,101 | $28,000 | $42,000 | 58% |
Key Insights: Real estate development generates the highest revenue per employee at $1,417,221, as individual developers and agents can manage multiple high-value transactions simultaneously with minimal support staff, creating exceptional per-capita productivity.
Food services shows the lowest revenue per employee at just $32,101, combined with the highest labor costs (58% of revenue), explaining why restaurant profitability remains challenging despite strong consumer demand and creating pressure for automation and efficiency improvements.
Financial services achieves elite efficiency with $378,230 per employee while maintaining moderate labor costs at 32% of revenue, demonstrating the power of leveraging capital, technology platforms, and regulatory advantages that create natural barriers to competition.
5. Small Business Revenue Growth Trends by Industry (2023–2025)
Understanding growth trajectories helps business owners anticipate market opportunities and adjust strategies accordingly. This table tracks revenue changes across industries over the past three years, highlighting which sectors are expanding and which face headwinds.
Growth trend analysis: Multi-year revenue movement and sector-specific growth drivers
Small Business Revenue Growth Trends by Industry (2023–2025): 2026
| Industry | 2023 Avg. Revenue | 2024 Avg. Revenue | 2025 Avg. Revenue | 2-Year Growth Rate | Key Growth Drivers |
|---|---|---|---|---|---|
| Technology & IT Services | $1,485,000 | $1,620,000 | $1,745,000 | +17.5% | AI adoption, cybersecurity demand, cloud migration |
| Healthcare Services | $1,390,000 | $1,475,000 | $1,580,000 | +13.7% | Aging population, telehealth expansion, staffing shortages driving fees |
| Construction | $985,000 | $1,060,000 | $1,150,000 | +16.8% | Infrastructure spending, reshoring manufacturing, housing demand |
| Professional Services | $1,310,000 | $1,365,000 | $1,420,000 | +8.4% | Compliance complexity, M&A activity, business formation rates |
| Financial Services | $1,750,000 | $1,815,000 | $1,890,000 | +8.0% | Interest rate environment, wealth management growth, fintech integration |
| Manufacturing | $1,260,000 | $1,305,000 | $1,350,000 | +7.1% | Nearshoring trends, automation investments, supply chain resilience |
| Food Services | $495,000 | $515,000 | $540,000 | +9.1% | Menu price increases, ghost kitchens, delivery channel growth |
| Retail Trade | $610,000 | $615,000 | $620,000 | +1.6% | E-commerce competition, experiential retail, omnichannel strategies |
| Transportation | $680,000 | $700,000 | $720,000 | +5.9% | Last-mile delivery demand, fuel cost pass-through, freight recovery |
| Arts & Entertainment | $360,000 | $375,000 | $395,000 | +9.7% | Post-pandemic event resumption, content creation demand, live experiences |
| Real Estate | $830,000 | $850,000 | $875,000 | +5.4% | Transaction volumes stabilizing, property management services, commercial recovery |
| Agriculture | $625,000 | $650,000 | $680,000 | +8.8% | Export demand, sustainable farming premiums, direct-to-consumer models |
Key Insights: Technology leads all sectors with 17.5% two-year growth, fueled by explosive demand for artificial intelligence implementation, cybersecurity services following high-profile breaches, and ongoing cloud infrastructure migration as businesses modernize legacy systems.
Construction shows exceptional 16.8% growth despite labor shortages and material cost volatility, driven by federal infrastructure investments, manufacturing facility reshoring, and persistent housing supply constraints, creating sustained project pipelines.
Retail experiences the slowest growth at just 1.6%, facing continued pressure from e-commerce giants, changing consumer preferences toward experiences over goods, and the need for expensive omnichannel integration to remain competitive with online-first competitors.
6. Conclusion: Insights for 2026 Small Business Success
Small business revenue varies dramatically across industries, with financial services and technology sectors leading at nearly $2 million in average annual revenue, while food services and arts businesses average under $550,000. These differences reflect fundamental variations in scalability, labor intensity, capital requirements, and profit margins that define each industry’s economic model.
The data reveals three critical insights for business owners. First, understanding your industry’s revenue distribution helps set realistic growth targets—knowing that 44% of arts businesses earn under $50,000 annually provides context that a six-figure milestone represents top-quartile performance in that sector. Second, profit margins matter as much as revenue—construction businesses averaging $1.15 million can achieve higher net income than retail businesses averaging similar revenue due to a 10.2% versus 3.1% net margin. Third, revenue per employee serves as a powerful efficiency benchmark, highlighting opportunities to improve productivity through technology, process optimization, or strategic staffing decisions.
Whether you operate a healthcare practice comparing against the $1.58 million industry average or a professional services firm measuring your $208,824 revenue per employee against peers, these benchmarks provide the foundation for data-driven decisions about pricing, hiring, expansion, and operational improvements. The strongest performers don’t just chase revenue growth—they optimize the relationship between revenue, margins, and workforce efficiency to build sustainable, profitable businesses that earn recognition as the best in their local markets.
If you’d like to request a PDF copy of this report or learn more about how Voted Number One can help your business gain recognition in your local market, you can reach out here.
Sources
- U.S. Small Business Administration — “2025 Small Business Profile: United States” — Office of Advocacy — June 2025 — https://advocacy.sba.gov/wp-content/uploads/2025/06/United_States_2025-State-Profile.pdf (2025 Profile data reflects the most recent federal census data available (typically 2-3 years prior).
- Vena Solutions — “45 Small Business Revenue Statistics + Tips To Boost Yours” — Nicole Bennett — January 2026 — https://www.venasolutions.com/blog/small-business-revenue-statistics
- Clearly Payments — “The Number of Businesses in the USA by Industry in 2025” — March 2025 — https://www.clearlypayments.com/blog/the-number-of-businesses-in-the-usa-by-industry-in-2025/
- NYU Stern School of Business — “Employee Metrics by Sector (US)” — Aswath Damodaran — January 2026 — https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Employee.html
- Vena Solutions — “Industry Benchmarks of Gross, Net and Operating Profit Margins” — Nicole Bennett — February 2026 — https://www.venasolutions.com/blog/average-profit-margin-by-industry
- Siana Marketing — “Average Construction Company Revenue: 2026 Report” — Daniela Pedroza — November 2025 — https://www.sianamarketing.com/resources/average-construction-company-revenue
- Federal Reserve Banks — “2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey” — Federal Reserve Small Business — 2025 — https://www.fedsmallbusiness.org/reports/survey/2025/2025-report-on-employer-firms