Business Guide to Starting a Tech Company | 2024
You can start your tech company easily with a strong business plan, key USPs, strategic partnerships, and a top-notch marketing plan.
medium to small-size
The entrepreneurial era constantly evolves, and everyone wants to have their own venture. However, did you know the tech industry is the most rapidly growing industry? With a majority of the tech companies in the US being <anchor>medium to small-size</anchor>, there is a high potential for a sustainable business in this sector.
Statistics about the tech work force in the US. How many employees? how many work in private companies how many in public companies. How many companies are private and how many public? how many of the private companies are startups? | Wonder
Statistics about the tech work force in the US. How many employees? how many work in private companies how many in public companies. How many companies are private and how many public? how many of the private companies are startups? \| Wonder

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# Statistics about the tech work force in the US. How many employees? how many work in private companies how many in public companies. How many companies are private and how many public? how many of the private companies are startups?

### Delivered July 5th, 2017. Contributors: Emma G. and 5 others

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## Statistics about the tech work force in the US. How many employees? how many work in private companies how many in public companies. How many companies are private and how many public? how many of the private companies are startups?

Hello! Thank you for your questions about the tech work force in the US. The short answer is that there are 7.3 million people employed by the tech industry in the US, and that 6 million are in the private sector. Of the 492,550 tech companies in this country, approximately 394 are public and 492,156 are privately held. Please see below for a deep dive of this research.

METHODOLOGY

To use the most up to date and valid information, I searched for statistics in this industry from US government databases and top demographic research sites such as the Kaiser Family Foundation. Where a direct number could not be found, I triangulated an answer with other data, as explained below. There was no information publicly available that separates government from other public jobs in this industry, so the employee numbers are shown here differentiated as public/government versus private.

TECH WORKFORCE STATISTICS

There are [7.3 million people](https://www.comptia.org/about-us/newsroom/press-releases/2017/04/03/us-tech-sector-employment-approaches-seven-million "2. \"Results page 1 of 68 for Press Releases | CompTIA\"") in the tech workforce in the US. Of this number, 1.3 million work in the public and government sector, and 6 million are in the private sector. This differentiation was calculated with the following information: There are [120 million private sector jobs](http://www.kff.org/private-insurance/issue-brief/diminishing-offer-and-coverage-rates-among-private-sector-employees/ "1. \"Diminishing Offer and Coverage Rates Among Private Sector Employees\""). Of this 120 million, [5%](https://www.comptia.org/about-us/newsroom/press-releases/2017/04/03/us-tech-sector-employment-approaches-seven-million "2. \"Results page 1 of 68 for Press Releases | CompTIA\"") are employed in the tech industry.

(120 million)\*(0.05)= 6 million tech private sector jobs

7.3 million-6 million= 1.3 million public and government tech jobs

Tech companies number [492,550](https://www.comptia.org/about-us/newsroom/press-releases/2017/04/03/us-tech-sector-employment-approaches-seven-million "2. \"Results page 1 of 68 for Press Releases | CompTIA\"") in the US. There is no data to separate this number into private versus public for this industry. However, if it is assumed that the tech sector follows the same trend as the US market in general, an estimate can be made of 492,156 private companies and 394 public firms.

There are [7,176,526 private companies](http://www.kff.org/other/state-indicator/number-of-firms-by-size/?currentTimeframe=0&selectedDistributions=total&sortModel=%7B"colId":"Location","sort":"asc"%7D "4. \"Number of Private Sector Firms, by Size - US\"") in the US and only [5,734 public](http://fortune.com/2017/01/20/public-companies-ipo-financial-markets/ "3. \"IPOs Are Dwindling and So Is the Number of Public Companies\"").

7,176,526+5,734= 7,182,260 total companies

\[(5,734)/(7,182,260)\]\*100%= 0.079% of companies are public

(492,550 tech companies)\*(0.00079)= 394 companies in the technology sector that are public

492,550 - 394= 492,156 private tech companies

This assumption is a valid one to make as only [62 tech companies](http://www.newsweek.com/tech-companies-are-actively-avoiding-going-public-2016-443885 "Tech companies are actively avoiding going public in 2016") went public in 2015, and [none went public](http://www.newsweek.com/tech-companies-are-actively-avoiding-going-public-2016-443885 "Tech companies are actively avoiding going public in 2016") in the first quarter of 2016.

Of the estimated number of private firms, [47,000 are tech startups.](http://economictimes.indiatimes.com/small-biz/startups/india-worlds-third-biggest-tech-startup-hub-study/articleshow/53794155.cms "5. \"India world's third biggest tech startup hub: Study - The Economic Times\"")

OTHER INFORMATION

The [majority of tech companies](https://www.selectusa.gov/software-and-information-technology-services-industry-united-states "6. \"Software & IT Services Industry Spotlight | SelectUSA\"") in the US are small to medium in size. Of all the firms, [99%](https://www.selectusa.gov/software-and-information-technology-services-industry-united-states "6. \"Software & IT Services Industry Spotlight | SelectUSA\"") have less than [500 employees](https://www.selectusa.gov/software-and-information-technology-services-industry-united-states "6. \"Software & IT Services Industry Spotlight | SelectUSA\""). Interestingly, above and beyond the 7.3 million employed by the tech sector, there are [1 million "self-employed](http://www.techrepublic.com/article/tech-industry-employment-soars-past-6-7-million-led-by-it-services/ "8. \"Tech industry employment led by IT services - TechRepublic\"") or sole-proprietorship tech workers in the U.S."

[IT services](http://www.techrepublic.com/article/tech-industry-employment-soars-past-6-7-million-led-by-it-services/ "8. \"Tech industry employment led by IT services - TechRepublic\"") led the growth in the industry in 2015 and 2016 with [engineering and research & development](http://www.techrepublic.com/article/tech-industry-employment-soars-past-6-7-million-led-by-it-services/ "8. \"Tech industry employment led by IT services - TechRepublic\"") coming in second in terms of job numbers. Growth in the industry overall was at [2% in 2016](https://www.comptia.org/about-us/newsroom/press-releases/2017/04/03/us-tech-sector-employment-approaches-seven-million "2. \"Results page 1 of 68 for Press Releases | CompTIA\""). Regardless of discipline, those employed in the tech industry have [average salaries double](https://www.comptia.org/about-us/newsroom/press-releases/2016/03/01/u.s.-tech-industry-employment-surpasses-6.7-million-workers "7. \"Results page 1 of 68 for Press Releases | CompTIA\"") that of those employed in other industries within the private sector ( [$105,400 versus $51,600](https://www.comptia.org/about-us/newsroom/press-releases/2016/03/01/u.s.-tech-industry-employment-surpasses-6.7-million-workers "7. \"Results page 1 of 68 for Press Releases | CompTIA\"")).

CONCLUSIONS

There are 7.3 million jobs in the tech workforce in the US. Of that, 6 million are in the private sector. There are approximately 394 public tech companies and 492,156 private tech companies in the US. There are 47,000 tech startups. Information on salaries, sector growth, and company size has also been reported.

Thank you for using Wonder! Please let us know if you have any further research needs.

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Sources

Sources

* * *

[**1\. "U.S. tech workforce approaching 7 million"** \
\
information-management.com](https://www.information-management.com/news/us-tech-workforce-approaching-7-million "1. \"U.S. tech workforce approaching 7 million\"")

[**1\. "Diminishing Offer and Coverage Rates Among Private Sector Employees"** \
\
kff.org](http://www.kff.org/private-insurance/issue-brief/diminishing-offer-and-coverage-rates-among-private-sector-employees/ "1. \"Diminishing Offer and Coverage Rates Among Private Sector Employees\"")

[**2\. "Results page 1 of 68 for Press Releases \| CompTIA"** \
\
comptia.org](https://www.comptia.org/about-us/newsroom/press-releases/2017/04/03/us-tech-sector-employment-approaches-seven-million "2. \"Results page 1 of 68 for Press Releases | CompTIA\"")

[**3\. "IPOs Are Dwindling and So Is the Number of Public Companies"** \
\
fortune.com](http://fortune.com/2017/01/20/public-companies-ipo-financial-markets/ "3. \"IPOs Are Dwindling and So Is the Number of Public Companies\"")

[**4\. "Number of Private Sector Firms, by Size - US"** \
\
kff.org](http://www.kff.org/other/state-indicator/number-of-firms-by-size/?currentTimeframe=0&selectedDistributions=total&sortModel=%7B"colId":"Location","sort":"asc"%7D "4. \"Number of Private Sector Firms, by Size - US\"")

[**5\. "India world's third biggest tech startup hub: Study - The Economic Times"** \
\
economictimes.indiatimes.com](http://economictimes.indiatimes.com/small-biz/startups/india-worlds-third-biggest-tech-startup-hub-study/articleshow/53794155.cms "5. \"India world's third biggest tech startup hub: Study - The Economic Times\"")

[**6\. "Software & IT Services Industry Spotlight \| SelectUSA"** \
\
selectusa.gov](https://www.selectusa.gov/software-and-information-technology-services-industry-united-states "6. \"Software & IT Services Industry Spotlight | SelectUSA\"")

[**7\. "Results page 1 of 68 for Press Releases \| CompTIA"** \
\
comptia.org](https://www.comptia.org/about-us/newsroom/press-releases/2016/03/01/u.s.-tech-industry-employment-surpasses-6.7-million-workers "7. \"Results page 1 of 68 for Press Releases | CompTIA\"")

[**8\. "Tech industry employment led by IT services - TechRepublic"** \
\
techrepublic.com](http://www.techrepublic.com/article/tech-industry-employment-soars-past-6-7-million-led-by-it-services/ "8. \"Tech industry employment led by IT services - TechRepublic\"")

[**Tech companies are actively avoiding going public in 2016** \
\
newsweek.com](http://www.newsweek.com/tech-companies-are-actively-avoiding-going-public-2016-443885 "Tech companies are actively avoiding going public in 2016")