Whether it’s the company that mows your lawn, the little restaurant you like to frequent, or the car dealership down the road, you come into contact with small businesses every day. Some people don't believe that small businesses are the backbone of the American economy, but nothing could be further from the truth. Large amounts of research from various organizations show that small businesses are vital to the sustenance of the American economy and we should be looking out for the best interests of these independently owned, local businesses. Here is some of the evidence for small businesses’ importance.
Make up the majority of employers
Small businesses are defined as companies with less than 500 workers. Because of this criteria, many businesses fall into this category. The 2010 census showed there were 27.9 million small businesses in the United States, but under 20,000 larger businesses. Small businesses also provide 49.2 percent of jobs in the private sector, including 43 percent of high tech employment and 98 percent of the firms exporting goods. When you think of “small” it’s unlikely these are the numbers that come to mind! Small businesses play a huge role in generating jobs and income for the economy; without them, our economy would likely crash.
Represent areas of diversity
The nature of small businesses is that anyone with an idea, a work ethic, and the funds can attempt to start one. This idea allows anyone to start their own business, without having to worry over whether or not they’ll be discriminated against. In 2012, a study showed that 14.6 percent of small business owners were minorities and women made up 36 percent of overall small business owners. Small businesses can be found in rural and urban areas, all over the country, in any industry. The flexible nature of small business allows anyone to start their own business and gives them an opportunity for success.
Lead to more innovation
A recent study done by the Small Business Administration found that small businesses apply for nearly 16 times the amount of patents that larger businesses do. This high number is likely a result of the amount of tech start-ups that are continuously popping up (think Apple or Facebook). In a small business, the people involved feel more committed to their goals and hold each other accountable for trying to find solutions. The energy is constantly flowing and prevents employee boredom that can occur in larger
This article provides useful charts and information about small businesses.