How Small Business Powers the US Economy?

People have this false notion that big corporations are driving US economy. They might be in shock to realize that small business is what drives the economy.

There are many who assume that it is the large corporations that provide all the jobs and support the economy. This is far from the fact and in fact the large corporations play only a small role in comparison. When it comes to any economy, including US economy, the small businesses are what drive the economy. If you don’t know already, 70-80% jobs are created by small businesses every year. And now you know the significance of small businesses.

Corporations

Let’s take a look at the contribution of corporations as far as job creation is concerned. If you combine the jobs created by corporations and governments, you will see that they create only 20-25% of the jobs in the US. Small business is the backbone of America without any doubt. We are strong because of the small businesses and nobody can ignore them. However, small business hardly gets the respect it deserves. We need to applaud them more for backing our economy time and again.

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No exaggeration

Yes, we are not exaggerating at all. It is clearly not an over the top statement. We have several reasons to stick to this comment. First and foremost, it is the truth and we should tell the truth. The problem with this is that not too many want to see the truth. Well, in that case some explanation might do the trick. Small businesses are indeed the true engines of our economy. However, you need to understand that we have nothing against the government or the corporation – both are creating jobs and very important. But the credit should be given where it is due. Knowing More about US Banking Sector will also be helpful – click here for more information on this.

Why small business matter?

When a small business does well, they have to hire more people. When more people are employed, there are many happier homes. Also, they will have more money to spend and this is going to help the economy. When people don’t have enough money they spend very less. In that case, they buy products and services from small business as well as big ones. At the same time, good profit will allow small businesses to expand their business and target bigger growth. Well, are you able to see why small businesses are really important to the business are concerned? Yes, when it comes to big corporations they employ so many people in comparison. But there are only a few big corporations in the USA and they can’t employee millions of job seekers. Big corporations pay well, but you need to understand the fact that they can create only a fraction of the jobs. They have their limitations when it comes to job creation. Keeping that in mind, you need to understand the significance of strengthening our small business sector.

American employees

Yes, that is the most important thing here. When it comes to big corporations, they are always looking for cheap labor. So they head to other countries where cheap labor is available. So, they are taking away the job opportunity of many Americans. That is where small businesses score as they always hire local talent. That means more Americans will be employed. That means more jobs will be created for more Americans.


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