How Important Are Small Businesses?

Summary

Small businesses are pivotal to the U.S. economy, with over 28 million employing 57 million workers. They are the primary job creators, generating nearly two-thirds of net new jobs between 1993 and 2013. However, they face challenges from high taxes and stringent regulations, which hinder growth and job creation. The Great Recession's aftermath has left small businesses struggling, reflected in a weak labor market with over 94 million Americans not working. To revitalize the economy, it's crucial to ease these burdens and support small business growth.

Takeaways

• 🏭 Small businesses are a vital part of the U.S. economy, with over 28 million small businesses employing 57 million workers.
• 👷‍♂️ These businesses are crucial job creators, responsible for nearly two-thirds of the net new jobs created between 1993 and 2013.
• 📈 In 2012 alone, small businesses generated more than 2.1 million net new jobs, highlighting their role in economic growth.
• 🌱 Small businesses are often in growth mode, seeking new markets and employees, unlike large businesses that tend to maintain their size.
• 🚫 High taxes and recent government regulations, particularly in health care, finance, and labor, disproportionately affect small businesses.
• 💼 Large corporations can more easily absorb the costs of compliance with regulations, giving them an advantage over smaller, newer businesses.
• 📉 The impact of these challenges is evident in the slow recovery of small businesses from the Great Recession and the weak labor market.
• 🔢 Over 94 million Americans are either not working or not actively seeking employment, indicating a significant portion of the population is not engaged in the labor force.
• 📊 The labor force participation rate is currently below 63 percent, which is the lowest it's been since the late 1970s.
• 🔄 To revitalize small businesses and the job market, it's suggested that job-killing taxes and regulations should be reduced or eliminated.
• 💼 Encouraging job creators to hire more employees is key to boosting the economy and providing career opportunities for millions.

Q & A

How many small businesses are there in the United States?

There are more than 28 million small businesses in the United States.

What is the employment impact of small businesses in the U.S.?

Small businesses employ 57 million workers in the United States.

What is the combined community size of small business owners and employees in America?

When owners and employees are added together, the small business community comprises roughly 85 million Americans.

What role do small businesses play in job creation in the U.S.?

Small businesses are the most important job creators in America, accounting for almost two-thirds of the net new jobs created between 1993 and 2013.

How many new career opportunities were created by small businesses between 1993 and 2013?

Small businesses created a total of 11.8 million new career opportunities between 1993 and 2013.

In what year did small businesses create more than 2.1 million net new jobs?

Small businesses created more than 2.1 million net new jobs in 2012.

Why are small businesses considered the main job creators in the country?

Small businesses are the main job creators because they are often growing and looking for new markets to expand, requiring additional employees.

How do large businesses typically manage their workforce compared to small businesses?

Large businesses generally stay the same size, hiring new employees to replace those who depart, rather than expanding their workforce.

What challenges do small businesses face that hinder their growth and job creation?

Small businesses face challenges such as high taxes and recent government regulations in areas like health care, finance, and labor, which disproportionately hurt them and prevent growth and job addition.

How do the financial capabilities of large businesses compare to small businesses in terms of compliance with regulations?

Large businesses with big profits can afford to comply with regulations, unlike small businesses that are just starting out and may struggle with the costs of compliance.

What is the current state of the labor force participation rate in the U.S.?

The labor force participation rate in the U.S. is less than 63 percent, the lowest figure since the late 1970s.

What measures are suggested to help small businesses recover and strengthen the job market?

To help small businesses recover and strengthen the job market, it is suggested that job-killing taxes and regulations be rolled back, and job creators be encouraged to hire more employees.