The conclusion is that you're misinterpreting that number. Small businesses are 99.7% of employers, but do not hire 99.7% of employees and do not represent tha

The conclusion is that you're misinterpreting that number. Small businesses are 99.7% of employers, but do not hire 99.7% of employees and do not represent that fraction of business activity. "An employer" is not a meaningful unit of economy because it varies so wildly in size. This argument is like comparing the United States to the other 199 countries in the world and concluding that the US should represent 0.5% of world economic activity. It's mistakenly treating entities of vastly different sizes as equivalent in the same population set.