Why We Love Small Business, and You Should Too
In celebration of National Small Business Week 2018, we can’t help but think how important small businesses are for the continued success of iPage. Not only are we inspired by their creativity and sense of adventure; we also recognize they have become an integral part of the entire American economy. You will be inspired too, once you understand the significant contributions they make to our local communities by creating jobs and keeping money and resources local. Join us in supporting them during Small Business Week, and throughout the year.
What qualifies as a small business?
According to the US Small Business Administration (SBA):
“Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.”
There’s a lot of small businesses in the United States – almost 30 million. These small businesses also account for 99% of employer firms, and over 49% of private-sector employment. Beyond these impressive employment numbers, they make significant contributions to the national economy and our local communities.
What percentage of small business succeed?
There is always uncertainty and risk when starting a new business. And Fundera notes that 20% fail in their first year, and about 50% of small businesses fail in their fifth year. But few seem deterred by these statistics. The Bureau of Labor Statistics (BLS) shows that the number of people self-employed in the U.S. has grown by nearly 150,000 since 2014, reaching 8,602,000 by the end of 2016.
The power of the entrepreneur has become a power to be reckoned with. There are more resources available to the small business owner than ever before. The SBA alone exists to assist and protect the interests of small business in order to strengthen the overall US economy.They offer help and resources year round, but be sure to explore all the special events that are happening in support of National Small Business Week between April 29 and May 5, 2018.
With the right idea, smart planning, and leveraging available support networks when you need it, small businesses can set themselves up to succeed. For example, every bright idea will need funding at some point. If a traditional bank loan isn’t for you, there are other options, some designed specifically in support of entrepreneurs. It could benefit you to think outside the box to procure the money you need to get your business off the ground. Plus in this digital age, there are dozens of free (or nearly free) tools and applications that can improve your efficiency. Find the tools you need to automate much of the day-to-day and business operations that are required regardless of your business model.
Even if starting your own business isn’t for you, it’s important to recognize their value, and support them when you can. You probably know a few small business owners or individuals who work for a small business.
Why is it important to support small business?
The impact of the mom and pop enterprise on a local economy is enormous. Take a look at just some of the contributions made by locally-owned small businesses.
Even though large corporations seem to garner the most attention and influence, small business accounts for 60 to 80 percent of all U.S. jobs. When you open your doors for the first time as a small business you are joining one of the largest and most powerful forces of the US economy.
The strong financial impact of small business goes beyond the number of individuals in your community that are employed by small businesses. When a company is owned by people who live in your community, the money tends to stay local, and that is a substantial amount.
Think about the products and services these businesses utilize to stay in business. Not only do small business owners, and their employees contribute to the community just by living there, they take advantage of local products and services. They are financed by local banks, and they purchase good and services from local suppliers. The end result is that the local economy is boosted because money is recycled within a small area.
It is estimated that every $100 you spend at locally owned businesses, $68 will stay in the in the community.
Thankfully, more and more professionals see the advantage of entrepreneurship and are deciding open a business of their own. When ‘Main Street’ thrives, the entire community benefits. So don’t hesitate to “shop local” and there’s no better time than Small Business Week to do just that. Doing so can be vital to the health of a community – and the US economy.
Feature Image: Flickr