About 20 percent of small businesses are "microbusinesses", with fewer than five employees, typically operating out of the owner's home.

The percentage of small businesses classified as "microbusinesses" is actually higher than 20 percent. According to various sources, including the U.S. Small Business Administration, a significant majority of small businesses have fewer than five employees, making them microbusinesses. This category includes a vast number of businesses operating out of the owner's home or other small-scale operations.