Small Business Has Big Impact on U.S. Economy

Did you know that 99% of all independent businesses in the U.S. employ fewer than 500 people? This means that small business technically dominates the U. S. market, accounting for 52% of all workers. Here are a few more numbers from the Small Business Administration:

  • The 28 million small businesses in America account for 54% of all U.S. sales.
  • Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970s.
  • The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail sales and provide jobs for some 8 million people.

Furthermore, the small business sector is growing rapidly. While corporate America has been "downsizing", the rate of small business "start-ups" has grown, and the rate for small business failures has declined.

  • The number of small businesses in the United States has increased 49% since 1982.
  • Since 1990, as big business eliminated 4 million jobs, small businesses created 8 million new jobs.

One of the reasons small businesses do so well in the United States economy is agility—their readiness to respond quickly to economic pressures and local community needs. Small businesses are also innovative compared to major corporations, though some of the tech industry's biggest corporations started out as “hobby” projects and sole proprietorships. In general, entrepreneurship provides and easier entry point into the economy, particularly for those facing disadvantages in the workforce, namely women and minorities. Building a business has always been part of the American dream.
New entrepreneurs thinking about the possibility of starting up should consider taking advantage of the many workshops, learning opportunities and resources available at NaperLaunch. NaperLaunch is a business startup center and coworking space at the Nichols Library in downtown Naperville. Find out more about NaperLaunch programs.

Posted: 
Monday, July 3, 2017 - 10:30am