May 23rd to the 29th marks National Small Business Week in the US. This event has been around since 1963 when the President of the United States proclaimed the celebratory week to recognize the economic contributions of small businesses.
Today, the small business sector continues to be a driving force in the US. In fact, there are currently 29.6 million small businesses in the country. Around half the American private sector workforce either own or are employed by a small business. They represent 99.7 percent of all employer firms and pay 44 percent of the total U.S. private payrolls.
By definition, a small business is an independent business having less than 500 employees. They are also a large contributor to the generation of new jobs. Over the last 15 years, they have created 64 percent of the net new jobs – or 4.5 million of the 22.5 million net new jobs between 1993 and the 3rd quarter of 2008. They hire 40 percent of high tech workers such as scientists, engineers and computer programmers. Small businesses also create more than half of the non-farm private gross domestic product (GDP) according to the US Department of Commerce, Bureau of Census and International Trade Administration.
Despite the global economic crisis, small businesses have proven their resilience and tenacity. According to the US Department of Commerce, Bureau of Census, Business Dynamics Statistics 69 percent of new employer establishments born to new firms in 2000 survived at least 2 years and 51 percent survived 5 years or more.
Aside from the facts and figures that show why they are the backbone of the American economy, small businesses are lauded for their embodiment of the entrepreneurial spirit, drive and innovation. They have played a vital role in the country’s recovery in the challenging economic climate.
Shopster salutes small business owners who have done their part at driving the economic strength of the country.
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