As a serial entrepreneur, I know first hand how important small business is and are… Not only to me but the US economy as well. I recently got asked this questions by a follower in Twitter , so instead of a quick reply, I figure I would point out a few important points about the importance of small business to the US economy…
- United States small businesses employed 57.9 million people,or [47.8%] of the private workforce, in 2014.
- Firms with fewer than 100 employees have the largest share of small business employment.
- Small businesses created 1.4 million net jobs in 2014. Among the seven BDS size-classes, firms employing 20 to 49 employees experienced the largest gains, adding 279,691 net jobs.
- The smallest gains were in firms employing 5 to 9 employees, which added 114,447 net jobs.
- During the year ending December 2016, private-sector employment increased [1.4%]. This was below the previous year’s increase of [1.7%].
- The number of proprietors increased in 2015 by [2.9%] relative to the previous year.
- DIVERSITY 8.0 million minority-owned businesses.
The employment situation in the US continued to improve. In December 2016, the unemployment rate was [4.7%],
down from [5.0%] at the close of 2015.
So as per the question asked, and the title of this post is very easy to answer; incredibly important! based on the information above, provided by the SBA.gov, the small business is the most important cog in the US economy, after consumer spending.
Most people simply don’t know or understand the magnitude of the small business sector in the US. But it can be easily seen with the data provided on this article. So to conclude, with what originated as a simple questions, but with three additions to it… I believe economist and big businesses understand this, and as to the final part to this questions… With the overall numbers of small businesses being created and the increase in entrepreneurs, as well as increase in colleges and universities across the US offering entrepreneur classes. Yes I think my point, efforts, and constant promoted content toward entrepreneurs is being heard, LOUD and CLEAR…
Thank you for the question…