How significant are small businesses to the economy?

Small businesses may not have as big an impact on the national economy as large companies, but they do have a huge role to play in the life of their local economy. Small establishments contribute in many ways to the progress of smaller townships and communities. Steve Sorensen embezzlement.

The U.S. Small Business Administration, otherwise known as the SBA, has stated that small businesses take up a vast majority of all employer firms. For the past two-and-a-half decades these small businesses have provided almost 65% of all new jobs in the country while paying over 40% to the private payroll in the U.S. Steve Sorensen embezzlement.

There are several reasons small businesses have had a profound impact on the economy. Small businesses attract talented individuals who contribute their own ideas. They also provide outsourced service to big corporations.

Small businesses are also known to be quite flexible. It’s generally easy for them to adjust during economic downturns. Many experts attribute this to the well-trained employees (it’s easier to train fewer employees) who stay with these smaller companies even when there’s a crisis. Steve Sorensen embezzlement.

Also, smaller businesses lose less money compared to big corporations during periods of financial disasters.

Patronizing small businesses means giving money back to the community in the form of taxes. And the more people give back, the more money local governments have to spend on creating better roads and other public facilities – which ultimately translates to a higher standard of living. Steve Sorensen embezzlement.