When people think of small business, in our economic sphere today, the lack of generated income is a clear area of concern. Big businesses and major corporations take the forefront in our economy and small business is often forgotten. Below are a few reminders, and recognitions for the importance of small business in the United States Global Economy:
According to the U.S. Small Business Administration (SBA), small businesses represent 99.7 percent of all employer firms. Since 1995, small businesses have generated 64 percent of new jobs, and paid 44 percent of the total United States private payroll, according to the SBA. With the generation of new jobs, many retired, unemployed, and economically struggling families have a chance to fix their situation.
Just the Facts
Small businesses contribute to local economies and bring wealth and growth, and even innovation to the community in which the business is located. Small businesses also help stimulate growth by providing employment opportunities to people who may not be attractive to big corporations. Skills are often overlooked by big business, and smaller corporations help to illuminate the lost talents of many people. Also, with new ideas and innovations, small business allows for the development and growth of new strategies that are often lost in the chain of big business.
Adaptability to Shift
Many small businesses also possess the power to respond and adapt quickly to our changing economy. This is due to the fact that small businesses are often customer-oriented. Many local customers will remain loyal to their favorite small businesses in the midst of an economic crisis. Mistrust in big business comes into play when crisis and emergencies hit. This loyalty means that small businesses are often able to stay afloat during tough times, which can further strengthen local economies. Small businesses also accumulate less revenue than larger corporations. This ultimately means that smaller businesses have less to lose during an emergency, which can result in a quicker process of rebuilding.
When consumers support local small businesses, they are essentially giving money back to their local community. A thriving local business will generate high levels of revenue, which means that the business will pay higher taxes, including local taxes. This money is then used for local police and fire departments as well as schools. For example, at West Chester University Book Store, all proceeds go back into benefitting the University. The received revenue with small business tremendously helps the surrounding community.
Future Growth is something that all small business groups can look forward too! With effective business strategies, small business can have a huge impact on our growing and ever-changing economy.