To justify the 23 million figure, McCain spokesman Brian Rogers referred us to a press release by the U.S. Chamber of Commerce, which refers to "23 million small business owners" without citing a source. That is actually an outdated count of all the businesses in the United States, produced by the U.S. Census for 2002, when the Economic Census counted a total of 23,343,821 business firms of all sizes. Of those, 16,845 firms employed 500 persons or more, which still leaves just over 23.3 million classified as "small" by the widely accepted definition that we will use here.
That figure is six years out of date. The U.S. Small Business Administration Office of Advocacy estimates the total number of "small" firms with fewer than 500 workers reached 26.8 million in 2006. That’s the most recent estimate. But it is also inflated. Since the total U.S. population was just under 300 million in 2006, it would mean that one in every 11 Americans – men, women and children – is a "small-business owner."
It turns out, SBAÂ’s estimate includes more than 20 million "nonemployer" firms, an unknown number of them sideline or hobby businesses run by persons who actually make their living some other way. Census and SBA count as a "small business" anyone who reported as little as $1,000 of business receipts. By that very broad definition, John McCain himself is a "small-business owner," because his tax return shows Schedule C income from book royalties. For that matter, Barack Obama would also be a small-business owner, by virtue of his book income. As would President Bush and Vice President Cheney, as we pointed out in 2004. Of the 26.8 million that SBA counts as "small businesses," fewer than 6 million are actually "employer firms" with any payroll.