Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

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.

Here’s why.

Job Creation

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.

Growth Potential

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.

Trending Topics

Financial Institution: Definition and What to Look For

The definition of a financial institution typically describes an establishment that completes and facilitates monetary transactions, such as loans, mortgages, and deposits. Financial institutions are a place where...

Banks in North Carolina

Did you know there are more than 100 First Bank locations in North Carolina? It’s true. You can find us in over 60 cities, mountains to coast. Did you know we’re one of the oldest banks in North Carolina? Yup,...

Small Business Loans – Jacksonville NC

Recently, Forbes named Jacksonville, NC #25 in cost of business rankings. The thriving business appeal makes Jacksonville a clear choice for entrepreneurs looking to start or expand a small business. First Bank’s...

Apply for a Flexible Small Business Loan in Jacksonville, NC

Forbes named Jacksonville, North Carolina as the #2 location for cost of doing business. Families, retirees, and business owners alike are continuously drawn to Jacksonville, making it one of the best places in NC to start...

Workers’ Compensation Insurance 101

If you’re starting a business and are unsure of the purpose of workers’ compensation insurance or how to acquire it, then you’ve come to the right place. This kind of state-mandated insurance covers...

What Are 20-Year Mortgage Rates?

There are various factors to consider when purchasing a home, including how to finance it. Some consumers may opt for a mortgage with a shorter term while others find it beneficial to extend the mortgage. It may be...

3 Tips for Saving Money in Your 20s

Saving money in your 20s may seem like an impossible task, but did you know that your 20s is actually prime time to start setting money aside for you future? If you’re wondering how to save money in your 20s, follow...

Where to Get Small Business Loan Rates

So you’ve decided to start a small business, and you have everything sorted out. Business plan…check, location, check. Small business loan rate quotes….not checked. Okay, so you have almost everything...

What are 30-Year Mortgage Rates?

If you are thinking about buying a home, you may be asking the question, “What are 30-year mortgage rates?” There are many ways to figure out the current average 30-year mortgage rates, but the best way to find...

Loan For a New Roof – Asheville NC

Looking for a loan for a new roof in Asheville, NC? A new roof can be a costly expense for a home or business and you may need to find alternative ways to pay for such a project. If you’re in need of a loan...