QuickBooks Data Shows Revenue and Jobs Falling at America’s Smallest Businesses in February

March 9, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: QuickBooks Data Shows Revenue and Jobs Falling at America’s Smallest Businesses in February

This study tracks the smallest businesses in America: firms with one to nine employees. The data comes directly from QuickBooks customer records, covering more than 533,000 small businesses across the United States. 

The latest report shows a slowdown in February.

Average real monthly revenue for U.S. small businesses with one to nine employees fell to $53,580 per business in February 2026, a decline of 1.03% from January. The Index reports revenue in 2017 dollars and seasonally adjusts the data to remove the impact of inflation and seasonal fluctuations.

 Revenue declined in 10 of the 12 sectors tracked by the Index. Utilities recorded the steepest drop, falling 5.88%, or $5,830 per business. Retail trade moved in the opposite direction. Retail revenue increased 0.82%, a gain of $640 per business, the strongest sector performance in February.

The slowdown was also national in scope.

Revenue declined in all eight U.S. regions, with the Plains experiencing the largest drop. At the state level, revenue fell in 14 of the 20 states tracked by the Index. Arizona posted the largest decline.

Employment data tells the same story.

Small businesses with one to nine employees employed 12,626,500 people in February. That represents a decline of 45,300 jobs compared to January, a monthly drop of 0.36%.

Every industry tracked by the Index lost jobs. Employment declined in all 12 sectors, with leisure and hospitality recording the largest loss and the fastest decline. The sector shed 11,300 jobs, a drop of 0.68%.

The geographic pattern was again consistent. Employment declined in all eight U.S. regions, with the Great Lakes experiencing the fastest drop. At the state level, jobs fell in all 20 states tracked by the Index. Ohio recorded the largest decline.

Because the Index is built from anonymized QuickBooks operating data normalized to the national small business population, it offers a direct window into the financial performance of America’s smallest employers.