Whether you’re a business student, a small business employee or a hopeful small business owner, it’s easy to feel like your work and your dreams are drowned out by the Fortune 500 companies and other big names in business.
These business tycoons may seem to be getting all the attention, but the reality of the small business advantage might surprise you. Small businesses benefit our nation and communities in a big way. More and more, the importance of small businesses in local communities and the national economy is coming to the light.
The little guys, from Mom and Pop restaurants to independent boutiques, are forming the backbone of our nation’s workforce. Keep reading to learn more about the big impact of small businesses.
Get the facts on the small business advantage
As you consider a career working for a small business or have dreams of starting your own, you might be concerned about your chances of success or whether or not you’ll make a positive impact. Don’t be—chances are your fears are unfounded.
We rounded up 12 encouraging facts that shed light on the benefits of small businesses. They might be just what you need to take the plunge and earn that business degree, apply for your first small business loan or even sketch out that business idea you’ve been dreaming about.
1. Small businesses are doing their part to keep the unemployment rate low
Though it’s hard to nail down an exact number, statistics suggest that small businesses account for between 60 and 80 percent of all US jobs! These businesses may only employ a handful of workers, but they add up to a large portion of the job market.
2. There are more small businesses than you may realize
It’s clear from that last fact that small businesses are abundant in the US. But just how many are there? It’s estimated that 25-37 million small businesses small businesses preside in the United States. So if you’re looking to start out your career working for a small business, there are plenty of options out there.
3. You don’t need a huge team to run a successful small business
Concerned that you need to hire employees right off the bat? Don’t be! The truth is that about 22 million small businesses consist of just one person.
4. Small businesses are killing it in retail
Considering starting your own boutique store or working for local retailer? You aren’t alone. Small businesses are rocking the retail market. They’re actually the largest retail employers in the US economy, making up about half of the retail employment market.
5. Small business owners are California dreamin’
Wondering where small businesses have fertile land to grow? In 2012, California had the highest number of small businesses and had the most workers employed by small businesses.
6. You don’t need to break the bank to get started
You don’t necessarily have to take out a huge loan to become a small business owner. There are several small businesses you can start for $100 or less. Think house and landscaping projects, like painting or gardening services. Or go online with app services, like becoming an Uber driver.
7. Social media is helping small businesses make big strides
There are several savvy ways to market your small business without a huge marketing budget. Facebook’s total number of users rose to 1.65 billion, a jump of nearly 60 million over the fourth quarter. Additionally, more than 3 million businesses are using Facebook’s advertising products every month.
8. Mobile devices are the future of purchasing
Will going mobile will help your small business grow? Keep in mind that we spend 174 minutes on our mobile devices each day, with 30 percent of all online purchases by millennials happening on mobile devices.
9. Small businesses have a surprising survival rate
Perhaps you’ve heard that most small businesses fail almost as soon as they launch. You might be surprised to learn that 70 percent of small businesses remain in operation for at least two years. Additionally, 50 percent are still around in five years; 33 percent are alive in ten years; and 25 percent are still thriving fifteen years later.
10. Small business are filling the employment void
Small businesses have done wonders for our economy. Large companies have eliminated a whopping 4 million jobs since the 1990s. But small businesses have come to the rescue, adding around 8 million!
11. Small business encourage inventiveness and new ideas
Small businesses are launching pads for new innovations. In fact, small businesses generate 13 times more patents per employee than large patenting companies.
12. Small businesses have room to grow
Small businesses are not necessarily that small. While there is no universal definition, some classify small businesses as any company with less than 500 employees. So if you see the potential for your small business to grow, that doesn’t mean you still can’t still reap the benefits of being “small.”
Starting small
Now that you know the facts, the benefits of small businesses are clear. They play a large role in our communities and the economy—and there’s a real future for those who start them.
If you’re ready to take the next step in launching a small business, check out our article: 8 Small Business Marketing Tips to Help You Make More with Less.
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