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Small businesses may have the word “small” in their name, but they are anything 
but diminutive. The US economy owes a gre...
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How Small Businesses Drive the U.S. Economy

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While companies like Walmart and Home Depot make headlines as bellwethers of the U.S. economy, small businesses create more than 60 percent of new jobs.
That’s why tracking the progress of small firms is so important to us.
We know companies are a big driver of the economy, but just how much do small businesses contribute to hiring, growth, innovation?
The infographic below takes a look under the hood of the small business economy to show you just how much small businesses contribute.

Source: http://blog.surepayroll.com/how-small-businesses-drive-the-economy/

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How Small Businesses Drive the U.S. Economy

  1. 1. Small businesses may have the word “small” in their name, but they are anything but diminutive. The US economy owes a great deal to small business, and the facts don’t lie—small business is big business for the US economy. HEAVY HITTERS Many people may believe that large businesses and corporations are the strength of the US economy. In actuality, small businesses play a crucial role in sustaining and growing today's market. According to the Bureau of Labor and Statistics (BLS): Between 1992 and 2013, In the third quarter of 41.8% of employment change came from small businesses Toward the end of September 2013, small businesses were responsible for a net increase of NOT ONLY ARE SMALL BUSINESSES INCREASINGLY RESPONSIBLE FOR JOB CREATION AND MARKET SUSTAINABILITY, THEY ARE ALSO INCREASINGLY DOMINANT AS THE AVERAGE FIRM SIZE CONTINUES TO DECLINE. 174,000 out of 386,000 jobs THE RISE OF THE SMALL BUSINESS Over 50% of businesses experiencing high growth had under 2013, 30% of net job growth came from firms with 1-49 employees Over the course of two decades, small businesses have become the norm as larger establishments continue to shrink. Since 1990, small businesses have added 8 million new jobs to the economy, while big businesses were responsible for the elimination of 4 million jobs. Average firm size (number of employees): 10 employees 16.7 17.5 16.6 16.4 15.6 MARCH 1994 MARCH 2000 MARCH 2003 MARCH 2007 MARCH 2010 50% RETAIL EMPLOYERS ARE NOW COMPRISED OF SMALL BUSINESSES. SMALL BUT MIGHTY Don’t let the name fool you—small businesses are critically important to the US economy, accounting for: 48.5% of private-sector employment It is estimated that small businesses in the US number between 25 and 27 million, CONCLUSION 99.7% of US employer firms Small firms under 500 employees also led job creation and accounted for 60% of net new jobs from 2009-2013 98% of firms exporting and that 60-80% of US jobs are created out of small businesses 42% of private-sector payroll 33% of firms exporting value Small businesses are also shown to be more innovative out-producing large patenting firms by 16 to 1 per employee goods THE NUMBERS DON'T LIE. THE DATA SHOWS THAT SMALL BUSINESSES CONTRIBUTE HUGE GROWTH AND POTENTIAL TO THE ECONOMY. FOR MORE INFORMATION ABOUT SMALL BUSINESSES, VISIT BLOG.SUREPAYROLL.COM Created by oBizMedia Sources nrf.com/news/economy/how-important-is-small-business-the-us-economy nrf.com/news/economy/how-important-is-small-business-the-us-economy www.bls.gov/opub/mlr/2012/03/art4full.pdf www.sba.gov/oces/headquarters/ocpl/resources/13493 nrf.com/news/economy/how-important-is-small-business-the-us-economy www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf www.bls.gov/opub/mlr/2014/book-review/small-business-innovation-and-jobs.htm www.nbcnews.com/id/45996365/ns/business-small_business/t/how-many-jobs-can-your-startup-create-year/#.VBSpyEuFb1o www.whitehouse.gov/omb/factsheet/supporting-small-businesses-and-creating-jobs

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