The Small Business Administration (SBA) identifies any company with fewer than 500 employees as a “small business.” It’s this definition that’s responsible for providing a large percentage of private sector jobs in the United States.
The SBA also cites a variety of studies that suggest small businesses create a smaller percentage of net new private-sector jobs than one would expect, especially when comparing them to larger firms. Nevertheless, these findings do not capture the full picture.
During the recession, small businesses created an average of nearly 800,000 new jobs per month, but they lost an even greater number. This led to a reduction in confidence among workers that small firms were stable places to work.
But, despite these negative numbers, the SBA still says that small businesses are major drivers of job creation. In fact, since the end of the Great Recession, they’ve created 62 percent of net new private-sector jobs.
There are several reasons why this is the case. First, most small businesses are family-owned and operated. That means the owners tend to put more care into building a solid company culture, mission statement, best practices, and training processes.
Second, many small companies are started by young entrepreneurs who have a passion for a product or service that they can market. As a result, these entrepreneurs often come up with creative solutions and have fresh ideas.
Third, a large part of small business success is determined by the level of employee engagement and support from management and staff. This is why it’s so important to have a strong team of employees that are dedicated and committed to your business.
Fourth, a great way to keep your small business growing is to find clients and customers. This can lead to financial growth and a wider variety of unique products and services.
Fifth, a large part of small business success also involves keeping your company competitive. This is why it’s so important for small businesses to stay up-to-date with current business trends and industry best practices.
Sixth, a large part of small business success involves finding ways to reduce your costs. This can be done by using less labor, reducing inventory, and utilizing smaller minimum order quantities.
Seventh, a large part of small business achievement also involves using social media to promote your company. This can be done by engaging in conversations on Twitter, Instagram, and other social platforms.
Eighth, a large part of small business success requires finding a way to increase your sales. This can be accomplished by promoting your products and services on social media, increasing your online presence through SEO and other strategies, or developing an innovative marketing strategy that is sure to attract more consumers.
Ninth, a large part of small business accomplishment also entails creating an identity that your community is proud of. This can be achieved by offering high-quality, personalized products and services to your clients, as well as by contributing to your local tax base.