The history of the U.S. Committee on Small Business dates back to October 8, 1940, when the U.S. Senate established the special committee to study and survey the problems of small business enterprises. This committee was terminated in 1949 and in 1950; a select committee on small businesses was formed. This select committee was terminated in 1981, when the Committee on Small Business was established. In 2001, Sen. John F. Kerry, the committee chairman, changed the name of the committee to the Committee on Small Business and Entrepreneurship.

The Committee on Small Business and Entrepreneurship is directed under the standing rules of the United States Senate to be referred all proposed legislation, messages, petitions, memorials, and other matters relating to the Small Business Administration (SBA).

This committee was formed to study and address the problems faced by small businesses and to aid the growth and development of small business, which are the backbone of the American economy. Their aim is to protect and promote small businesses in the United States. The committee aims to conduct periodical research and investigations to study and record the problems and hurdles faced by small businesses in America and report them in order to solve them.

The committee holds discussions on how to solve problems faced by small businesses such as compliance with the Sarbanes-Oxley Act and if there was any way to solve these problems. For example the committee took steps to solve problems of small businesses affected by natural disasters such as Hurricane Katrina.