While it is true that small businesses make up a large portion of the economy in the United States, the actual percentage is closer to 99.9%. The Small Business Administration (SBA) defines a small business as one that has fewer than 500 employees. These small businesses are crucial to the economy, accounting for approximately 44% of the economic activity in the country. Therefore, the statement that 99.7% of businesses are small is inaccurate, making the correct answer 'False'.