It is amazing the role that companies with less than 500 employees play in the U.S. economy. Most do not realize how truly important these businesses are, or the fact that they are actually the foundation on which our economy is built. If they suddenly disappeared, they would leave a devastating void.
Small Businesses Are Many
In 2010, those businesses with less than 500 employees exceeded larger firms 1,500 times. In fact, there were 27.9 million businesses in the U.S. that met the criteria for small business designation. Not only that, but many of those were sole proprietorship, non-employer companies. Each industry has a definition for the number of employees it can have and still have an enterprise be considered “small,” according to SBA standards.
Small Businesses Create Jobs
It isn’t even the “bigger” small businesses that pull the hard load on this one. In 2013, companies with 1 to 19 employees created more jobs than those with 20 to 49 employees. Even the tiniest of small businesses are small but mighty, making a huge impact. And remember, even today’s corporate giants were at one time considered “small.”
Small Businesses Are Needed
If all of the small businesses in the U.S. were to suddenly cease to be, the effects would be tragic. Fifty percent of private sector workers would be unemployed. Ninety-eight percent of exporters would disappear. Fifty percent of non-farm GDP (Gross Domestic Product) would be gone, and 99.7% of all business employers would be no more. Could the country survive a black hole such as that?
Small Businesses Need Support
As important as small businesses are to the economy, more close each year than start-up. Getting a small business to that 5-year point is crucial to its long term success, and for that they need the support of their local communities and those that surround them. Small business owners need training and access to financing as well.
Biz2Credit can help on the financing front. We have an extensive network of lenders that offer a broad range of small business loans to fit various businesses and situations. Visit Biz2Credit.com today to see how we can help you find the perfect lender for your business needs.