This month on Let’s Talk Biz we are focusing on the impact that small businesses and nonprofits have on the U.S. economy. You’ll want to tune in to hear what our guests have to say about the outlook and the impact of small businesses.
By Carolyn A. Winston and Addison Sims, Hosts of Let’s Talk Biz
Most people think that the backbone of the U.S. economy is concentrated in a handful of Fortune 500 companies. The Fortune 500 companies do have an impact on the U.S. economy, but small businesses have a greater impact on the economy. Usually, small businesses do not make headline news; the media’s attention is typically on Wall Street, but Main Street plays a significant role in the U.S. economy. In terms of employment and private (non-farm) gross domestic product small business drives the U.S. economy. Small business provides jobs and spurs our economic growth. If large corporations lay-off workers small businesses are the ones behind the scene creating jobs for displaced workers. The Small Business Administration Office of Advocacy reports that small businesses have been the driving force behind new job creation, generating between 60 percent and 80 percent of all new jobs annually over the past decade. Small businesses are responsive to consumer change and taste; contribute creativity, productivity, and ingenuity to technologies; and engage in global opportunities. Small businesses hire about 68 million workers, almost half of all private sector jobs.
U.S. small business firms pay about 44 percent of the total U.S. private-sector payroll, according to the Small Business Administration, that is approximately $2.1 trillion of the total (non-farm) private-sector payroll of $4.8 trillion.
Small businesses have a significant impact on our communities. Small business owners represent a diverse group of individuals, of all ages, from all educational, ethnic, and religious backgrounds. Small businesses represent the moral, social, and economic values of modern society which form the backbone of local communities. They participate in community activities, support local charities, and share concerns about education, crime, and the environment. Small businesses owners help fight poverty. Forming a small business offers many individuals the opportunity to rise above the poverty line.
Now, that we have shared some exciting statistics about small businesses and their support for nonprofits let us share some key findings about the outlook of small businesses:
• Small businesses firms hiring has slowed because of a distressed economy
• There remains a need to streamline rules, regulations, etc. for small businesses
• Access to capital is a challenge and it is hard to get bank loans and more small businesses are
using credit cards to finance their businesses
To check out Let’s Talk Biz’s pick of the week visit our website, www.letstalkbiz.biz. Want more tips? Join host Carolyn Winston and Addison Sims next week on Let’s Talk Biz and for marketing support register for our FREE Small Business Mentor Protégé webinars, www.letstalkbiz.biz. Until we meet again, keep talking biz!
Disclosure: This is sponsored content