Small businesses have always been appreciated by Americans for their remarkable influence on the US economy, known to constitute about 86% of its economic base. These enterprises are held in high reverence, held even higher in esteem than institutions like the military and religious groups. A strong 96% of the American populace understands the crucial role small businesses play in ensuring the country’s economic health.
Despite their ‘small’ label, these enterprises, with around 500 employees, account for 99.9% of the nation’s commercial enterprises. Approximately 33 million of them exist, and around 6 million have a paid workforce, accounting for a whooping 46% of total private sector employment. They are notable for their significant impact on job creation and boosting local economies.
They are widespread across diverse sectors such as retail, manufacturing, healthcare, and technology. They provide unique products, offer outstanding personal customer services, and capitalize on the excellent knowledge of local markets, thereby stimulating economic growth effectively.
Small businesses often require assistance and thrive with available resources, mentoring, regulatory supports and favorable business policies. About half of these businesses have between one to four employees and operate with a lean operational model.
Small businesses: Essential dynamos of US socio-economy
As such, every employee plays a significant role in these enterprises. 15% of the businesses operate without any additional employees.
In 2021, these small businesses generated around 56.4 million jobs and contributed an estimated $16.2 trillion to the nation’s income. Despite the pandemic, these businesses showed resilience, adapting to new norms by pioneering innovative business methods, and playing substantial roles in community development.
Contrarily, in 2021, only 27% of small businesses supplying ownership information were family-owned. Instead, a sizable 73% was under other forms of ownership, with 10% being co-owned and operated. The rise of co-owned businesses indicates the effectiveness of shared leadership and a cooperative approach within this sector.
Small businesses are thus a testament to tenacity and unmatched entrepreneurial dynamism. Their contribution to economic revitalization, job creation, and seamless innovation cannot be understated. This makes the promotion and support of small businesses pivotal for the sustainable economic growth of the country.
