Understanding Small Business

Our economy is in a state of constant change. Throughout our history the public's interest in and emphasis on business has fluctuated. We can recall the swing in interest between small and large business. In our country's early years the economic foundation was built upon the small business, the family farm, the local inn, the village specialty shop, the town pub. As we grew and technological advances and inventions increased, the larger business also grew to dominate the center of public and media attention. But even during the mid-1900s, the heyday of big business, there has always been that foundation of small businesses supporting a major portion of our economic development. Over 75 percent of new jobs continue to be created by small business.

Small businesses make up over 95 percent of the total number of U.S. businesses, and over the past 20 years the number of business starts has almost tripled. Statistics now show that new business starts hover around three-quarters of a million each year. Along with the increasing number of small businesses being formed, trends show that small businesses offer the greatest opportunities for jobs. Think of all the reports you hear daily about this corporation laying off so many hundreds or thousands or that corporation restructuring and downsizing. The statistics support the reports we are hearing—employment opportunity favors small business for both the new worker entering the workforce and the corporate employee either disillusioned with big business or forced to gain new employment after falling victim to corporate downsizing. Interest in entrepreneurship is developing at a younger age with nearly 10 percent of the start-ups being generated by individuals under the age of 25. Thousands of colleges and universities offer courses and degrees in entrepreneurship.

Small businesses have also become an even more attractive alternative for women, minorities, and individuals seeking the freedom of working from their homes. With the continued growth of e-commerce, entrepreneurs can reach new customers in national and international markets with limited investment in bricks and mortar.