Small businesses – the heart of America, and they are also the core of a stable economy. It is in the best interest to support a small business network. The local economy composes of people just like you and me. Individuals working together to make ends meet and doing the things they love to get by. Small businesses are on the front lines of commerce, driving economic growth and dynamism while boosting job creation and innovation. They are also among the first in the economy to feel the effects of slow growth or bad public policy. Small business sectors drive more than 45% of the U.S. gross domestic product. About 98% of the country’s businesses have fewer than 100 employees.
Small enterprises employ nearly half of workers in the American private sector. Historically, small businesses have been responsible for two-thirds of all net new jobs. This ubiquity makes small businesses a key piece of the American economy. They play a critical role in its success and growth. Aside from contributions to our general economic well-being, founders of small businesses also contribute to growth and vitality in specific areas of economic and socio-economic development. In particular, small businesses do the following:
- Create jobs
- Spark innovation
- Opportunities for women and minorities
In addition, they complement the economic activity of large organizations. They do this by providing them with components, services, and distribution of their products. More and more, small business ownership is reflecting the diversity of the United States.
Small businesses create jobs, and it is true. Although just 21.5% of all small businesses are employers, almost half of the nation’s private-sector workforce 49.2% is employed by small businesses. This accounts for 120 million people. Small businesses have been responsible for creating two out of every three net new jobs in our country. Accounting for 42.9 % of U.S. dollars, small businesses drive a ton of consumer spending into the U.S. economy, as well as income tax dollars into the government’s budget.
Although the split between those working in small companies and those working in big companies is about even, small firms hire more frequently and fire more frequently than do big companies. Lots of small companies start but only some expand. These small companies need workers and so hiring takes place. But the survival and expansion rates for small firms are poor, and so, again at any given point in time, many small businesses close or contract and workers lose their jobs. Fortunately, over time, small firms have added more jobs than are taken away. This results in a net increase in the number of workers.
Small businesses so innovative, as they tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are done. Fast decision-making is encouraged, their research programs tend to be focused, and their compensation structures typically reward top performers. According to the study, the supportive environments of small firms are roughly thirteen times more innovative per employee than the less innovation-friendly environments in which large firms traditionally operate. Individuals working in these units focus their attention on creating new products that can then be developed by the company.
Opportunities for women and minorities:
Business ownership allows individuals, including women and minorities, to achieve financial success, as well as pride in their accomplishments. While white males still own the majority of small businesses, the past two decades have seen a substantial increase in the number of businesses owned by women and minorities.
Funderama LLC supports small businesses in America as we know that small businesses are the backbone of the American economy. Small businesses tend to foster environments that appeal to individuals with the talent to invent new products. They also improve the way they do things. They typically make faster decisions, their research programs often are focused, and their compensation structures frequently reward top performers.