There’s plenty of anecdotal evidence about why small businesses are awesome, but did you know that they also have a major positive impact on the nation’s economy and progress? It’s true! From job creation to technological innovation, small businesses truly are the backbone of America. Here are some reasons why.
1. They’re hiring
In 2016, 50 percent of small businesses plan to hire new employees, a 12 percent increase from 2015.
2. New businesses are opening literally every day
About 543,000 new businesses are started each month, which comes to more than 6.5 million per year. Even if just a small fraction of those businesses continue over the long term, they still promise massive opportunities.
3. They’re innovating
It might seem like big corporations with huge R&D budgets are churning out new technological advancements, but it’s actually small businesses that are getting it done. Small businesses produce 16 times more patents per employee than large companies.
4. They’re confident in their future
According to the National Small Business Association (NSBA) 2015 economic report, nearly half of small business owners anticipate growth in their business throughout the next six months. What’s more, nearly 75 percent of those surveyed said they were confident in the future of their business — the highest recorded percentage in the last four years.
5. They employ most Americans
The majority of U.S. workers aren’t employed by huge corporations. Instead, 52 percent work for small businesses, and 39 percent of workers in the tech industry are employed by small businesses.
6. Exports are big business for small businesses
It might seem like large corporations would dominate the export business, but it turns out that small businesses actually make up 97 percent of exporters, and they produce 29 percent of all export value.
7. They’re adding jobs
Not only are small businesses adding net new jobs, but they’re adding more than large businesses.
8. They aid economic recovery
Although small businesses took a major hit during the recession, young and small firms continued to add jobs, while older and larger firms eliminated more jobs than they created.
9. They’re growing
Over the past twelve months, the average business selling with Square has experienced revenue growth.