If there is anything that has become extraordinarily clear in the recent past, as relates to our economy, it’s that Small Business, not big business represents the majority on multiple levels. From innovations and patents to net new jobs created and gross domestic product, small businesses around the country have been giving it their all through thick and thin. America has always been a place where necessity is the mother of invention. As a matter of fact, this defines us as a people. This is what the American Spirit is all about.
Unfortunately, small businesses have never recieved the type of support that they are due given the percentage of the economy that they truly represent. According to the SBA – Small Business Administration small businesses:
1. Represent 99.7 percent of all employer firms!
2. Employ about half of all private sector employees
3. Make up 97.3 percent of all identified exporters…
3. Have generated 60 to 80 percent of net new jobs annually over the last decade
4. Create more than half of all non-farm private gross domestic product (GDP)
Here’s the gist of it; these small businesses that have such a marked and profound impact on the US economy, employing the majority of our workforce, are failing at an alarming rate! More statistics from the SBA: In 2007 there were an estimated 637,100 new businesses started. Approximately 560,300 small businesses were closed with approximately 28,322 ending in bankruptcy. Do the math… And here’s the epidemic part. It’s been this way for a very long time and it’s getting worse!
Here’s something else. Again according to the SBA a full one third of new businesses close their doors within the first two years. Fifty six percent close their doors after just four years and sixty nine percent go out of business by year number seven. In summary, our economy is dependant to a very large and growing extent on small businesses, more than half of whom never make it to their fith year anniversary. This, as stated above, is a problem of epidemic proportion and demands immediate attention.
We will endeavor in this blog to provide information, tips, methodologies, concepts, plans, resources, contact information, success stories and critical thinking in an effort to overcome the small business epidemic in America.
We thank you in advance for your interest and consideration and welcome your comments – It’s going to be an interesting trip!
