As the United States celebrates National Small Business Week, ACT | The App Association recognizes the contributions of the thousands of small app and software developer businesses across the country. Our members create technology products and services that serve every industry of the American economy – from manufacturing to healthcare to education. To highlight the growing and dynamic app economy to which our members and other small technology companies contribute, the App Association recently released the fifth edition State of the App Economy report which outlines the trends and developments that have arisen from the app economy’s rapid growth. Below are a few of those key points.

  • The vast majority of U.S. app companies are located outside of Silicon Valley. Eighty-three percent of top app companies are based outside of Silicon Valley, and many are located in rural communities throughout the United States. Through innovations across America, the app economy is creating new jobs and opportunities in every corner of the country.
  • Small businesses play a huge role in the app economy. In fact, 82 percent of top performing apps are developed by small businesses with fewer than 500 employees. It is the small tech businesses who create and innovate, populating app stores and providing consumers with an array of apps that can meet a variety of needs.
  • Apps require a lot of hard work to develop, but don’t require huge capital investments. With computer science skills and reasonable access to capital, any small business has the potential to innovate and succeed in the app economy. With low barriers to entry and huge opportunities, developers, innovators, and small business owners from all backgrounds are playing roles in the app ecosystem and creating diversity in the apps and software available to consumers.

For hundreds of years, small businesses have been the engine of the American economy. As our economy evolves to meet cultural, technological, and social needs, small app and technology companies like App Association members are often at the forefront of that change. As our report shows, the app economy is paving the path to the future of all industries, and small businesses continue to lead the way.