The American small business is not always credited enough for its contribution to the economy. The world of small to medium businesses in the United States has contributed to more jobs than the congregation of conglomerates and large corporations. This is not just a statistic of 2013 but a reality that has been existent since 1995. The small business drives the American economy, both from the perspective of growths of markets as well as consumer spending. While it is well known that entrepreneurial spirits in the country lead to formation of more than half a million small businesses every month, the surprising reality is that small businesses amounting to many more than that number shut down every month as well.
Small Business Tips
The domain of a small business is tricky. With limited financial resources, absence of luxuries that corporations can afford and being confined to certain capping respective to the industry the small business is in, every small business has a risk of being redundant or irrelevant in due course of time. Our info-graphic that is based on the statistics from United States Census Bureau would unravel some very interesting facts about small to medium businesses including non employer firms and freelance businesses.
Economic Impact of Small Business
A considerable majority of the American workforce is working for small businesses. More jobs are created in the small business segment than by corporations. Also, the small business segment generates more revenue and pays more taxes in comparison with the large business segment. While there are so many pleasant facts about the small business, there are some hard facts which are far from being cheery.
A two third majority of small businesses shut shop within two years and about half of new small businesses do not survive the five year test. Only a third makes it to the tenth year and barely a quarter make it past the fifteenth year. These are not testimony to the failure of the idea of a small business but a reality nonetheless. There are several other facts and statistics that are equally surprising. Not all of those statistics are unpleasant however as our info-graphic would show you. There are many pleasant surprises in store, particularly in the segment of home based small businesses and freelance businesses. Non employer firms are also faring very well with substantial revenues across diverse industries.