Let’s do a little exercise.
Take something really American, like a college football game. Now, let’s try and figure out how many small businesses are involved with the game.
First, football stadiums will rent out concession space to outside vendors, so you’ll have the elephant ear cart, the fajitas cart, and whatever else.
Next, you’ve got the print company that printed out all of the programs. You’ve got the sponsors with signage around the stadium. You have the marketing agency that helped sell the space. You have local television stations covering the event, as well as radio. You have the construction firm that helped build the stadium. You’ve got the restaurants around the college people go to after the game.
And we could go on and on.
We hear a lot about small business and how important they are to America, so let’s take a look at how this is happening.
First, let’s take a look at what exactly is defined as a small business. According to the SBA, it’s a corporation, a limited liability company or a proprietorship with 500 or less employees. So how does a business with so few employees play any part in shaping the future of America? The Intuit–IFTF Future of Small Business Project states:
“Small Businesses are an important and growing driver of U.S economic growth and dynamism. They employ over half of America’s private sector workers, produce over half of America’s non-farm private GDP, and create 75% of new private sector jobs. The next decade will see the growth of small businesses continue, and the social and economic impact of small businesses increase. “
Clearly, small businesses are a large part of the national economy, providing jobs and growth.
But there’s still a major part of the puzzle missing.
It’s important to realize small businesses are also building blocks for large corporations, without which these corporations cannot function efficiently and effectively. Construction companies, accounting firms, marketing agencies and other small B2B companies all help support large corporations. A lot of small businesses also eventually become these big corporations.
So how does this growth happen?
To understand the process, let’s go all the way to the beginning. When you establish a small business, you’ve got an idea. You think this idea might work, so you establish a tiny business which let’s you test out your ideas in the market, basically helping you determine whether your business is actually worth a salt. This is a huge advantage that a small business has, as it makes more sense to first test out your business idea on a smaller scale than to jump in with a large amount of investor money, and a lot more risk. Small businesses are also a lot more nimble, being able to pivot quickly when they see an opportunity.
On top of that, small businesses are more aware of their customers needs. Because you’ll have a close network of people working together, you are in a better position to mold the businesses to cater to the demands of the customers. Also, if consumer demand increases then you can quickly create more jobs and increase your workforce, while maintaining the right customer culture.
Local economic stability is a direct effect of small businesses. As a small business owner, you can help boost the local economy by providing jobs as well as by paying local taxes. The local communities then put this increase in revenue to good use and as a result, the whole community grows.
If you have a great idea, go ahead and give it a try. If you succeed, not only will you be fulfilling your dreams, but you’ll be helping this great nation we live in become an ever greater place to live.