Why Small Businesses are necessary for the Economy | Career Advancements | ACTS
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- Apr 1, 2020
- 2 min read
Updated: Apr 21, 2020
Why Are Small Businesses Important
Small businesses are a vital part of the American economy. A small business is an independently owned and operated company that employs a limited number of people with limited revenue. Some examples of small businesses are bakeries, restaurants, law firms, mechanic shops, delis, and dealerships. The US Small Business Administration reported that small business between the years of 1998 and 2014 created over 60% of the new jobs seen during these years. The small business created the majority of new jobs and also contributed over 40% to the united states economy make them an extremely important part of the country's economy.
Who do Small Businesses Employ
One of the advantages of Small Business Management is that the company itself can decide who to hire. Small Businesses provide great employment opportunities to a wide range of the American workforce. The United States Census Bureau reports that in the year 2016 over 30% of people over the age of 25 had college degrees. While nearly 90% of people over the age of 25 had finished high school or equivalent. The is a noticeable gap between college-educated adults and those with just a high school diploma. However, this is where small businesses come in. Not every small business will require a college-educated workforce. Nearly 60 million people in the United States are employed through a small business this accounts for almost 50% of the entire workforce.
Small Business Provide Economic Opportunity
Out of the 30 million small businesses in the united states, 8 million are minority-owned. Small business provides economic opportunity for all demographics. However, to increase the chances of success for a small business, the business owner should have a set of skills and knowledge. Programs geared towards small business owners can provide them with the skills and knowledge they need to succeed. Programs such a Small Business Management Specialist, Supply Chain Management Specialist, Business Communication Specialist, Entrepreneurship, and Human Resource Management are all programs that can really help new small business owners.
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