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Where the Wild Things Are: The Governance of Private Companies
Privately owned companies that do not issue shares to the public far outnumber public companies. There are over 25 million private companies in the United States and less than 4,000 public ones. Furthermore, while the number of public corporations has been declining over the past two decades, the number of private companies continues to grow. The largest private companies have a significant impact on the economy and labor markets. In 2022, the average revenue of the 200 largest private companies in the United States was $7.89 billion and the average number of employees was 17,474. As important, the economic activity of the largest private firms is similar to that of the companies in the bottom half of the S&P 500 index. In aggregate, private companies employ more individuals, interact with far more people, and span a broader range of economic activities than public companies.
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