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Why Small Business Is Essential To A Healthy Economy


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America is the land of grit and gristle. People flock to this country in search of opportunity, expansion, and new experiences. We build the back of this great nation on small but significant innovations, some of which have become giant corporations that drive our economy today.


How Small Business Played A Significant Role In Our History

Small businesses have been an integral piece of the American puzzle since the time of the first colonial establishment. From small farmers to small stores, people found ways to come together and trade goods and services in a way that benefitted all.


Small business continues to be a significant thread in the fabric of our economy. Why have so many of us abandoned our support of small businesses in favor of "bigger is better"? We need to celebrate and support small business growth, and view it as an investment in the future of merchants and small families and the spirit of entrepreneurship that drives us to create more. Here are some other reasons that small business growth is essential to a healthy economy.

  1. They are an integral part of local economies. Small businesses help to keep money circulating in your local economy. As people commit to shopping local, the investment is quickly filtered through other businesses as people buy goods and services, boosting profitability for everyone involved.

  2. Small businesses provide stable employment. Two-thirds of all new jobs come from small or start-up businesses. In the last two decades, small businesses can be credited with creating 12.9 million jobs, with an additional 5.5 million jobs this year alone. Employees working for small businesses cite greater content with employment, as they feel heard and valued by supervisors in a way that would not be possible in a large corporation.

  3. They provide an anchor of support for larger businesses. Many large corporations depend on small business specialization to keep their organizations going. These jobs may include marketing, bookkeeping, packaging, branding, and HR services. Whatever these specializations may be, small business keeps these larger businesses up and running to serve their customers as well.

  4. Small businesses adapt well to changes in the market. Change is monumental for big corporations. Even the smallest fluctuation in market volatility can mean millions of dollars for a large company, as structures and systems are more difficult to alter. Small businesses take these changes in stride, and due to its tight team and tightly knit structure, changes can be made in a way that gives all employees input and investment.

  5. Small businesses are innovators. Small businesses are the movers and shakers of a chosen industry. They are not afraid to take significant risks and go out on a limb to produce products and services with passion and pride. Studies show that small businesses produce almost 16 more new patents per employee than larger companies; this creativity and quick, confident decision-making allow tasks to be accomplished in less time.

  6. Small businesses give back by paying taxes. As small business gives back to the community in which it started, we see benefits in our infrastructures. Better medical facilities, police and fire departments, and other community initiatives are taken care of with funds from these businesses' taxes. Small businesses account for almost 60 percent of all federal excise taxes and 50 percent of corporate income taxes in the US alone.

  7. Small businesses have tremendous potential for growth. Corporations such as Amazon, Microsoft, and Nike didn't blow up overnight. They also started as small local businesses that gave back to their communities. Small businesses that grow into large, caring companies that give back are another way that small business significantly impacts our local and national economies.


How Will YOU Choose To Make A Change?

As you consider your own small business growth, consider collaborating with another company that once started from the ground up. MaxGroup Business Solutions is passionate about getting your business growth on a path to sure success and prosperity. Professional marketing solutions, social media campaigns, and tips for business success are just a few of the many outstanding services we offer our valued clients. Jump in with us and take a wild ride to the top! Visit www.maxgroupbusiness.com for more information.