Small Business Drives the US Economy
Big businesses grab the headlines and often the glory when the economy is doing well, but it’s the small business owners are the true powerhouses behind economic improvements.
When you think of American employers, you may picture large companies like IBM or Home Depot. But did you know that small businesses make up over 99% of all employers in the US?
In fact, small businesses are responsible for generating 67% of all new jobs since 1995. A strong workforce is extremely important to the continued growth of the US economy.
Impact on Local Economy
Small businesses are the lifeblood of local communities. While many companies focus on products and services that the whole world can benefit from, others fill in gaps in the market to meet local needs.
Job creation gives employees the ability to buy products and services from other local businesses in their area. Profits lead to taxes that can go toward public funding for emergency services, public roads, and parks.
Flexibility and Innovation
Luckily for small businesses, there is no rule that says that you have to be a large company to come up with great ideas. In fact, small businesses are responsible for 13 times more patents per employee than large companies.
A lack of red tape gives small businesses more freedom to follow through with innovative ideas. This flexibility also helps companies change direction quickly if they realize that something they’re doing isn’t working as planned.
Everyone has heard about Steve Jobs and Woz in the garage. Some small businesses will eventually become the next Apple or Microsoft.
When a company goes from 2 employees to tens of thousands of employees, it can have a major impact on the economy. Large companies often rely on small companies for specialized work. This gives the smaller company steady business and continues the cycle of growth.