The Importance of Small Business to the US Economy
A small business is considered to be any company that employs less than 100 people. In the United States, small business employs over half of the country’s workforce. While many people think that new industrial giants are the most important factor in driving the economy, but small business is actually the top dog. Without small businesses, where would half of the country work?
Small business in America has been the stabilizing force in the economy. Entrepreneurs are the backbone of creativity and production. Small business is what stimulates economic growth. With over 60% of all private sectors, non-farm jobs coming from small business, it is a proven fact that small businesses are critical to the United States economy.
Minority owned small businesses are also important to the economy. The strong growth in owner income and decrease in the amount of companies going bankrupt is a great sign. Self-employment figures are also growing nationwide.
Some spectacular facts about small businesses include the following:
Small companies hold patents in the United States over 10 times as much as large businesses.
Small businesses claim a 50% success rate at the four-year mark.
Home-based companies are over half of the total small businesses.
The Small Business Association watches out for small businesses in America by helping them to stay in business. They offer to help them find educational training when needed, and assist small business owners with finding alternative funding sources when they need it. The Small Business Association tracks data and statistics about various small businesses and reports this information to the United States government.
Advocates for small business have been trying for years to appeal to the American government to stop catering to large corporation and start giving tax breaks to the small business owner. Small business owners represent almost 100% of all employers and are doing all they can to promote the value of their companies through events like Small Business Saturday. The idea behind this grassroots promotion is to encourage all community members to shop and do business with small businesses instead of the corporate giants.
Most people say they prefer to work for themselves than to work for another employer. Unfortunately, without the assistance of the United States government, small businesses are going to shrink with each coming year. This country could learn something from its European neighbors by lowering the tax rate of independent small businesses.
Aside from the tax benefits that should be encouraged in America, the business policies could use a bit of work as well. Regulations stand in the way of many small businesses and much of the barriers could be easily removed to make room for development of small business in varied industries. Financial aid is harder to obtain in the States as well, making it difficult for American entrepreneurs to feel the same as they used to about small business.
Unfortunately, without the backing of the government, the most important part of the American economy – small business – is slipping away. It is time to recognize the critical piece small business plays in our economic success, so go to evolveyourbiz.com right now to learn more about ways to encourage small business success.