How Small Businesses Help The Economy
From obtaining working capital to getting your taxes in order each year, there’s always something to keep you occupied as a small business owner. However, it can be a good idea to stop and think every now and then about how your efforts are helping the nation as a whole.
Beyond the benefits
There are numerous reasons why people go into business for themselves. Some people just want to be their own boss. As an owner, you’re the one in control, and although that comes with unique stressors of its own, it also means total freedom in your career.
The flexible lifestyle offered as a small business owner is just one attraction, however. While you may take on more risk as a small business owner, you also give yourself the chance for more reward.
Small business owners also get to follow their specific passions and decide who they work with.
Finally, there’s also the special pride that comes with knowing you built something of your very own.
But the benefits provided by small business ownership go well beyond those enjoyed by the owners themselves.
Adding to the marketplace
According to data from the Small Business Administration, there are 23 million small businesses in America, accounting for 54 percent of all U.S. sales.
It’s these entrepreneurs who provide most employment opportunities for Americans. Small businesses provide 55 percent of all jobs and 66 percent of all net new jobs since the 1970s, according to the SBA.
This self-starting spirit continues to endure, as well. Forbes reported in 2013 that approximately 543,000 new businesses get started each month. These businesses add to local economies through employment, the purchase of goods, availability of services and more.
Unlike large corporations, money spent at small businesses is more likely to be funneled back into local communities, helping to keep towns and their citizens financially secure.
Additionally, with so many large companies bringing in goods from overseas and hiring labor in other countries, small businesses keep the U.S. economy moving, manufacturing and hiring on American soil.
It’s for all these reasons and more that small businesses are an essential part of the economy. And while business owners will no doubt face challenging conditions from time to time, there are various options to help keep small businesses thriving.
From small business working capital loans and merchant cash advances to different types of equipment leases, owners have a wealth of options to choose from when trying to make their operations more efficient and effective.