The distribution of privately held business assets in the United States

Although privately held businesses are central to the economy and society, little is known about how their assets are distributed among the population. To better understand rising and persistent wealth inequalities, this paper describes the household distribution of private business assets in the United States and examines how it has changed over time. Using data from the 1989–2019 Survey of Consumer Finances, we show that the relative number of business owners has remained stagnant at low levels and that assets in privately held firms have become increasingly concentrated. In 2019, the top 1 % of households controlled nearly 80 % of the equity in private businesses, up from about 70 % in the late 1980s. Moreover, we find that these trends appear to be quite general and do not merely reflect dynamics among elites or in specific sectors of the economy. We discuss implications for the organization of the US economy, wealth inequality, and public policy.