Small Business Big Result
What do you think of a word business? You probably think of certain brands or companies you interact with every day like Walmart, Apple or even General Motors. These are what would be considered big businesses. Companies that employ thousands of people all across the country if they decide to set a shop they can provide hundreds of jobs to local communities but unfortunately big businesses are often vulnerable to changing market condition and economic cycles which can lead to widespread job loss or even recession.
If big businesses pose such big risk, should communities look to them for stability? What if small business more than big business holds the future for economic growth? Small business includes companies with anywhere from 1 to 500 employees but don’t let the numbers fool you. Small business is more important than you think. If you look at European business, it is comprised of small business and such small businesses make up ninety-nine point two percent of entire European employer firms. In businesses with less than 20 workers make up 89. 6%. These businesses pull their way in the market the 28 million small businesses in America account for 54% of all US sales.
Small businesses are also crucial for job creation. Since 1970s’ small businesses have provided 55% of all jobs and 66% of all net new jobs across the globe. And since 1990 while big businesses have eliminated four million jobs while small businesses have added eight million jobs. Its clear small business has big impact on economy because small business is a violent part of any community as well as viable alternative to big businesses having a place that fosters small businesses and allows them to grow is equally vital. That’s where business incubators come in.
Business incubators provide critical help to small businesses at their most vulnerable time reducing the risk of failure. 87% of firms that graduate from business incubators are still in business after five years. Business incubators also brings revenue back into the community. For every $1 of public spending at an incubator $30 is generated in local tax revenue.
So supporting a small business, giving them a platform to do a business and big companies helping in funding could increase number of working people and helps to reduce unemployment and poverty rate as everybody will have an opportunity to earn bread for family if not at least for themselves.