- Wendell Brock
The Power of Small Business
According to the US Small Business Administration (SBA), small businesses make up 99.7% of American companies with paid employees. From 2000 to 2017 small businesses accounted for more than 65% of job creation. That’s a powerful influence on our economy.
Small businesses play a huge role in growing our economy. Even though most small businesses have fewer than 100 employees, they create millions of jobs. Of the almost 160 million employed people in the U.S., about 46% of them work for a small business. According to the US Census Bureau, an average of 4.4 million new small businesses start up each year, providing job opportunities for people all over the country; it’s clear small businesses are vital to our economy, creating a constant source of growth.
No matter the size of the small business, 1,10, or more employees, it has the power to create something where nothing existed before and boost the local economy. However, it’s well known that not all small businesses can make it past their first year. Research from the US Small Business Administrations shows that about 70% of new businesses will survive beyond their first two years, and only 25% will make it beyond 15 years. Knowing the substantial impact these small start-ups have, it becomes even more important to support our local businesses. We can do this by seeking out new brands, sharing our favorite local sites on social media, purchasing produce form local farmer’s markets, or purchasing gifts locally.
Small businesses strengthen our economy. Leslie Hassler, a small business scaling strategist, explained, “As small businesses continue to scale, their impact on the economy strengthens as they hire more people and build more connections with other small businesses and nonprofits, which knits an ecosystem of personal connections.” These businesses are the lifeblood of the U.S economy.
The AMEX 2018 Small Business Economic Impact Study found that about 67% of each dollar spent at a small business stayed within the local economy. This type of cycle is a great stimulant for the economy.
Our country is full of small businesses, and while a health economy supports both big and small businesses, part of the American Dream is having the right to create your own business and make your own success. The more we can support small businesses, the stronger our economy will be, and by supporting your local small business, you'll be supporting and boosting your own local economy. That's pretty powerful.
Photo by Tim Mossholder