When talking about important small businesses many people automatically think of large businesses and corporations. This is due to the fact that we often see them on T.V. and interact with them daily. Businesses are often underestimated simply because they’re small. However, they are arguably just as important for our economy and community. Small businesses also allow for people to live out their dreams and are an outlet for creativity.
1. Small Businesses provide jobs
One of the reasons why they are important is because they provide jobs for the community. As businesses grow and expand there becomes a need for employees to help keep the business running. As a matter of fact, in 2018 small businesses created 1.9 million net new jobs. They also make up 99.7% of U.S. employer firms. It’s safe to say that small businesses do their part in helping the economy while providing more job opportunities.
10 Small Business Statistics Every Entrepreneur Should Know In 2021
There are 30.7 million small businesses in the U.S. which account for 99.9 percent of all U.S. businesses (SBA, 2019).
According to the Small Business Administration, small companies create 1.5 million jobs annually and account for 64 percent of new jobs created in the U.S. (Fundera, 2019).
Over 90 percent of the business population represents small- and medium-sized businesses, also known as SMEs (SalesForce, 2019).
As a matter of fact, more than 50 percent of small enterprises fail in the very first year, and more than 95 percent of small startups fail within the first five years (Convergehub, 2019).
The primary reason that new businesses fail is because of a lack of market demand. In fact, 42 percent of small businesses fail because of this reason (CB Insights, 2019).
One of the top challenges that small businesses face is the poor quality of labor. In fact, 52 percent of the respondents stated that the most important problem for small businesses was labor quality (CNBC, 2019).
2. High job satisfaction
It’s also important to note that people employed by a small business generally are satisfied with their position. A survey done by QuickBooks found that
- 25.10% of employees at a small business are “very satisfied” while
- 51.30% are “satisfied.”
Working at a small business provides you with the opportunity to know your coworkers and boss more intimately which ends in you being more comfortable at work. Small businesses usually also provide a flexible work schedule.
3. Small Businesses foster the local economy
Small businesses also have the opportunity to bring more tourists or visitors to the local community. Which in turn, helps level up the community. Local of course also help support the local economy and when customers support the business they are also doing their part in supporting the community. Which in turn also helps bring the community together. If you’re looking to start or grow your own business consider becoming a member of GACN which will provide you with all the tools you need.
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