The United States is home to a vast number of small businesses. In fact, there are over 33 million small businesses in the US, which account for 99.9% of all companies in the country.
Small businesses play an important role in the US economy. They create jobs, generate economic activity, and help to keep communities vibrant. Between March 2020 and March 2021, small businesses created nearly 9 million new jobs
The Growth of Small Businesses
The number of small businesses in the US has been growing in recent years. In 2010, there were just over 29 million small businesses in the US. By 2021, that number had grown to over 33 million. This growth can be attributed to several factors.
Rise of the Internet
The Internet has provided new opportunities for small businesses to reach customers and conduct business. Digital marketing has opened up bigger markets, allowing small businesses to expand their customer base beyond local boundaries.
Increasing Availability of Financing
Access to financing is crucial for small business growth. Over the years, there has been an increase in the availability of financing options specifically tailored for small businesses. This includes traditional bank loans, microloans, crowdfunding, and government-backed loans.
Growing Demand for Customized Products and Services
Small businesses often excel at providing personalized and unique offerings. As consumers seek products and services tailored to their individual preferences, small businesses have an advantage in meeting these demands.
The Impact of Small Businesses
Small businesses have a significant impact on the US economy. Their contributions extend beyond job creation and economic activity.
Job Creation
Small businesses are the engine of job creation in the US. In 2021, small businesses created 42% of net new jobs. They are an essential source of employment, particularly in local communities.
Economic Activity
Small businesses generate economic activity through their operations. They purchase goods and services from suppliers, contribute to local tax revenues, and stimulate economic growth within their communities.
Diversity and Innovation
Small businesses contribute to the diversity of the US economy. They offer a wide range of products and services, which helps to meet the needs of a diverse population. Small businesses are often at the forefront of innovation, bringing new ideas and solutions to the market.
Support for Small Businesses
If you are thinking about starting a small business, there are a number of resources available to help you get started and succeed. The Small Business Administration (SBA) is a great resource for small business owners.
The SBA offers a variety of programs and services to support small businesses, including assistance with business planning, access to capital, and counseling services. Additionally, there are numerous online platforms, communities, and networking events specifically designed for small business owners to connect, learn, and grow.
Small businesses are an integral part of the US economy. With over 33 million small businesses in the country, they play a vital role in job creation, economic activity, and community development.
Small businesses have the power to drive innovation, foster economic growth, and shape vibrant communities!