There’s Nothing Small about Small Businesses

What do all founders have in common? For one – they all had to start small.

All businesses – yes, even Fortune 500 companies – were once a simple idea. An opportunity. A vision. And the fact of the matter is that while some businesses are classified as “small,” there is nothing small about them.?

Small businesses are the unsung heroes of the U.S. economy. They account for 99.9% of all businesses in this country and employ 61.6 million people – nearly half (45.9%) of the entire U.S. workforce. In fact, a recent report from the U.S. Bureau of Labor Statistics shows that small businesses contributed 55 percent of net total job creation over the last decade. Why then is it still so challenging in 2024 to run a small business?

One obvious answer is the financial challenges involved. Uncertain market conditions, inflation and other budgeting issues can spell disaster for a new business. Then there is the burnout – working endless hours and without the ability to delegate to a larger staff. Even more challenges arise for women-led small businesses.?

Female founders often face the added obstacle of being the primary caregiver for their children and families – taking time and focus away from their businesses. Women also tend to struggle more than their male counterparts when it comes to fundraising, either due to gender bias that prevents them from accessing capital, or simply that they’re asking for less. Nothing holds women back more than self-doubt. The fear of failure too often prevents women from taking necessary risks that allow them to soar.?

Did you know that women-owned businesses make about 66 cents for every dollar that a male-owned business does?? For the reasons aforementioned, I suppose this might not come as a complete surprise – but it’s still a disappointment. Fortunately, the outlook for women-led firms is good.

Earlier this year, Wells Fargo released its inaugural Impact of Women-Owned Business report which looks at trends in women-owned businesses from 2019 through 2023. Despite the myriad challenges faced – the COVID-19 pandemic foremost among them – women started more businesses, created more jobs and put up huge numbers as far as revenue generation. What this tells us is that when women build their entrepreneurial dreams, they create opportunities for others. They make communities stronger and have the potential to make a massive impact.??

In the month of May, the U.S. observes Small Business Month to celebrate and support small businesses and their founders for all their contributions to the economy and our local communities. As consumers, we yield a great deal of power in choosing how and where to spend our money. What if we chose to use this power for good and to do good by small businesses??

This month, skip your go-to Starbucks order and visit the neighborhood coffee shop. Or, instead of heading to the nearest big-box retailer, visit a makers market like Rise + Shine Marketplace (Side note: Bold Moves is sponsoring and I'd love to see you there!) or local shop like William James Gifts to pick out a friend’s birthday gift. The American consumer makes on average two online transactions daily, so let’s use our digital wallets to lift up small businesses!

Not just this month, but year-round, I implore you to support your local small businesses. Better yet, support those started by women.?