Reagan Hales

The Role Of Small Business In Economic Development

A healthy economy requires small business growth and sustainability. When small businesses are healthy and prosperous, the community-at-large benefits and prospers, too. 

Small Business Is The Backbone Of The Community

There are 28 million small businesses in America. These businesses employ 55% of the workforce and account for 54% of transactions throughout the year. Since the 1970s, small businesses have been responsible for 66% of all net job creation within the economy. Together, small businesses pack a large punch that provides stability to the American workforce.

In addition to privately owned small businesses, franchised businesses have grown significantly in the past decades. Today, the nearly 600,000 franchised small businesses such as restaurants, gas stations, coffee shops, and retail outlets across the country provide 8 million jobs, and account for nearly 40% of retail sales.    

Entrepreneurs Drive Small Businesses

America is an entrepreneurial country. The spirit of entrepreneurship is deeply engrained in our culture, and small business owners are the men and women who take their ideas and bring them to life.

small-businesses.jpgSmall business ownersThe community members who hang their own shingle are the men and women who comprise the backbone of the community. The provide jobs for their neighbors, donate to local charities, support community events, and do everything they can to ensure their business provides goods and services the community needs and counts on.

Since 1982, the number of small businesses across the country has increased a staggering 49%. While big businesses have downsized by nearly 4 million employees, small businesses have added 8 million jobs. Indeed, many small business owners are men and women who left larger companies in order to pursue their own business goals.  

Small Businesses Are Becoming More Successful

Opening a business is a considerable risk, but business owners have become highly skilled at managing these risks. The small business failure rate has dropped 30% since 1977. This is due to better training, better education, and greater access to information.

 have learned lessons from the past and have used them to strengthen their operations and streamline the processes they utilize. the result is that small businesses are highly adept, flexible, and capable of changing their operations to meet market needs without having to cut through corporate red tape first.

The result is that small businesses can maintain their viability and vitality as the market changes and consumer sentiment evolves.

Small Business And Big Business Are Joined Together

Big businesses provide an anchor of economic stability in a community. They provide large numbers of jobs that create the disposable income small business depend on. Moreover, big businesses depend on the goods and services small businesses provide their employees. Together, they create a symbiotic circle that both require for their viability.

Want to learn more about how the Amarillo Economic Development Corporation supports small businesses? Contact us today.

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