WAYNE RIVERS: A fascinating fact about small business is simply how many there are of them. The Family Firm Institute (ffi.org) estimates there are about 24 million private and closely held businesses in America; Forbes estimates there are about 27 million. It’s the publicly traded companies that get the headlines on the evening news, but in comparison to the number of private businesses, they represent less than 1% of the total. In fact, going back to 1991, the number of publicly traded companies has fluctuated from 4,916 to 8,884. The total today stands right around 5,000.
About 5.7 million small businesses have employees, and private companies account for between 56% and 63% of America’s GDP. Small business employs about half the people in the workforce, and account for about 86% of companies with 500 or more employees, according to Forbes. Small business is big business.
In some ways it’s easier today to be a small-business entrepreneur. Because the marketplace is so large, technology that was available only to corporate giants 20 years ago now makes running a small business a bit simpler. Bookkeeping, payroll and staffing, marketing and lead automation, and other technological tools and services help small-business owners rein in costs and unload busywork thereby increasing their efficiencies and the amount of time they can devote to productive activities.
So how does this information help an entrepreneur run her business?
First, the sheer number of private and closely held businesses should give the entrepreneur encouragement and reassure her that there is marketplace opportunity.
Next, owning a small business allows an entrepreneur to invest in herself rather than being the a cog in a massive organization; simply put, being a small-business owner allows one to increase and easily see the impact she’s making in the world.
Third, since the scope and reach of most small businesses is limited, that means they must be niche players. For an entrepreneur, it’s possible for that niche to equal love; that is, she can pursue a passion and attempt to turn it into a business.
A niche product or service allows for marketplace advantages like focus, customization, specialization and individualized service. Fourth, the sheer number of small businesses demonstrates that there are many advantages to being local or regional versus world-wide and megalithic. Consumers, given a choice, generally prefer to do business with someone with whom they share a church, civic club, school, and community.
Finally and most importantly, owning a small business can allow an entrepreneur to establish a family legacy and transmit important family values to future generations more effectively than any other type of organization on earth with the exception of religion. This is the primary reason why small business is the predominant form of business around the world; entrepreneurs adore the capacity their small businesses give them to have a positive impact on others.
Wayne Rivers is the co-founder and president of the Family Business Institute and author of books about family and closely held business, including “The Top Nine Reasons Family Businesses Fail and The Eight Building Blocks for Creating a Sustainable Closely Held Company.”
number of small businesses in us 2017, number of small businesses in us by industry, number of small businesses in usa
Source: http://docphy.com/business-industry/business/guess-many-small-businesses.html
No comments:
Post a Comment