How Many Businesses Earn Over $1 Million?

Ever wondered just how many companies break the $1million revenue mark each year? That figure isn’t just a bragging right - it tells you how common it is to run a medium‑size operation, what sectors dominate the market, and where new ventures might fit in. Below you’ll find the latest U.S. numbers, a sector‑by‑sector breakdown, and a quick guide on where the data comes from, so you can see the landscape clearly and plan your next move.

Key Takeaways

• In 2023, roughly 1.1million U.S. businesses reported revenue above $1million.
• Manufacturing, professional services, and wholesale trade account for over 45% of those firms.
• The count grew by 4.2% from 2022, driven mainly by tech‑enabled service firms.
• Data comes from the U.S. Census Bureau’s Business Dynamics Statistics, the Small Business Administration, and the IRS “Form 1120 Schedule C” filings.
• Understanding these numbers helps entrepreneurs gauge competition, size‑up financing options, and set realistic growth targets.

What Exactly Is a Million‑Dollar Business?

A Million‑Dollar Business is any legally registered entity that generates at least one million U.S. dollars in gross annual revenue. The threshold is purely financial - it doesn’t factor in profit margins, employee count, or industry type. In practice, crossing the $1M line often signals a shift from “small” to “mid‑size” status, opening doors to larger credit lines, more sophisticated accounting systems, and eligibility for certain government contracts.

Where Do the Numbers Come From?

Three main sources feed the national picture:

• U.S. Census Bureau - through its Business Dynamics Statistics (BDS) program, which surveys establishments with 20+ employees and captures revenue data for all size classes.
• Small Business Administration (SBA) - publishes the Small Business Profile, pulling data from the Economic Census and tax filings.
• Internal Revenue Service (IRS) - aggregates revenue from Form 1120, 1120‑S, and Schedule C filings, giving a tax‑based cross‑check.

All three agencies use the North American Industry Classification System (NAICS) to group businesses by sector, ensuring apples‑to‑apples comparisons. While each source has a slightly different coverage scope, the BDS is considered the gold standard for year‑over‑year trends because it surveys a consistent sample of establishments.

Nationwide Count for 2023

According to the 2023 BDS release, the United States had **1,114,000** enterprises with revenue exceeding $1million. That represents about 22% of all private firms that filed tax returns for the year. To put it in perspective, the total number of private businesses (including those under $1M) hovered around 5million, so about one in five businesses reaches the million‑dollar milestone.

The breakdown by employee size shows that:

• Businesses with 1‑9 employees make up 38% of the million‑dollar group.
• Those with 10‑49 employees account for 32%.
• Enterprises with 50+ employees represent the remaining 30%, but they contribute a disproportionate share of total revenue.

Sector‑by‑Sector Snapshot

Manufacturing leads the pack, but the fastest‑growing segment in the last five years has been Information services, boosted by cloud‑based SaaS providers and digital media firms. If you’re eyeing an industry‑specific niche, the data suggests that high‑tech services can cross the $1M line with fewer employees than traditional manufacturing.

Year‑Over‑Year Trends (2019‑2023)

Looking back from 2019 to 2023, the total count of million‑dollar firms rose from about 970,000 to 1,114,000 - a compound annual growth rate (CAGR) of 3.6%. The most notable spikes occurred after the 2020 pandemic shock, when remote‑work tech, e‑commerce logistics, and health‑care suppliers saw accelerated demand.

Here are three takeaways from the trend data:

1. Tech‑enabled services added roughly 180,000 new entrants, outpacing the growth of manufacturing by 2.5×.
2. Average revenue per million‑dollar firm increased from $2.4M in 2019 to $2.9M in 2023, indicating not just more firms but also higher sales per firm.
3. Geographically, the Sun Belt states (Texas, Florida, Arizona) contributed a net gain of 120,000 firms, reflecting the broader population and cost‑of‑living shifts.

What These Numbers Mean for You

If you’re planning to launch a startup, the fact that more than a million businesses already pass the $1M threshold tells you two things. First, the milestone is reachable - you don’t need a Fortune‑500 budget to get there. Second, competition is fierce in certain sectors, especially manufacturing and wholesale trade, where the barrier to entry includes capital‑intensive equipment and supply‑chain networks.

Practical steps based on the data:

• Choose a high‑growth sector. Information services and professional‑technical consulting grew fastest; a low‑employee, high‑margin model can get you over the line quicker.
• Benchmark your revenue against the sector averages shown in the table. If you’re a retail firm, aim for at least $2.2M in annual sales to stay near the sector mean.
• Leverage SBA loan programs that target businesses already earning $1M+ - many lenders view that figure as proof of cash‑flow stability.
• Track your progress with the same metrics the Census uses: total revenue, employee count, and NAICS classification. That alignment makes it easier to compare yourself to national data.

Frequently Asked Questions