WHY SMALL BUSINESSES ARE THE FUTURE
According to the Chamber of Commerce, any business with less than 500 employees is considered a ‘small’ business.?There are some other quite eye-opening statistics that completely demolish any attempt to discount small businesses as inconsequential. ?
Did you know that 99% of small businesses in the U.S. are ‘small businesses’? Yes, that’s not a typo. As you might have noticed, it’s nearly 100%… And did you know that about 120 million people ie almost 50% of the workforce are employed by small businesses? Or that 60-65% of new jobs are created by small businesses??
So, if you’re running a business with less than 500 employees, you’ll probably agree that the term ‘small business’ is not all that appropriate. In fact they should be called ‘the engine of the American economy’ in my opinion.
And, did you know that the failure rate is only about 20%??I mean that’s high if you’re one of the 20%, but realistically it’s actually not too bad. The main reasons for failure are underfunding and bad management. Not a bad service or product or too little demand.
But here’s another ‘statistic’ I’d like to talk about. The main reason, I believe, for why so many - 80% - of small businesses succeed!
Hint: It’s tied in with last week’s article.
The main reason is that they’re started and run by people with passion and vision and who have everything to lose. Failure is just not an option.
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When you cannot afford to lose everything, it means you’ll do whatever it takes to make sure that you succeed! Including being willing to reassess your strategies, be agile and forward thinking, and be prepared to take a risk because you’re the only boss you have to answer to.
Another advantage that small businesses have is that their hierarchy tends to be flatter - fewer layers of management and much less bureaucracy. All of which adds to closer interactions between all stratas within the organization and more personal connections.
Small businesses tend to be a lot less formal and a lot more open to discussion and innovation - wherever it comes from. Less committees, less approvals necessary and less wasted time.
They have their struggles and challenges for sure, but there are so many advantages that it’s not surprising - especially when times are tough - for small businesses who can respond quickly to thrive.
From what I’m seeing, it seems that the ‘Great Resignation’ has been the catalyst for the emergence of many new small businesses and that trend doesn’t seem to be slowing anytime soon.
So next time someone talks about ‘small businesses’ without giving them due credit, tell them about the statistics and refer them to this rundown by the Chamber of Commerce:
If you’re a small business owner, CEO or employee, give yourself a pat on the back. You’re part of the ‘engine of America’!
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Financial Advisor ?? | CEPA? Certified Professional | Building businesses that serve your life, not consume it ??
2 年Wow those are some interesting statistics Andre. This country is definitely built on small businesses and it’s why I do my best to support them. ??
The Ikigai Guy ?? ? Author of 'The Ikigai Way'
2 年I worked for some of the largest companies in the world as well as a few small businesses. Very different experiences as an employee. Now as a small business owner as well, I can say yes to all of the observations you make. It is so much easier in a small business to have an impact. I do think with the tools and technology available more people will take the opportunity to start their own thing. I see it as an extension of uncovering our Ikigai and am excited about the next few years for small business.