Small Business Saturday - Recognizing the Fabric of America
On Saturday, November 28th, American shoppers will turn our attention from the door-buster mega-sales of Black Friday to a more intimate, home-grown style of commerce. The upcoming fifth anniversary of Small Business Saturday is a tip of the hat to the home-based internet retailers, mom-and-pop shops, and innovative startups that give personality to commerciality and exemplify the American dream. In honor of the shopping holiday first introduced by American Express in 2010, here’s some food for thought to remind us of just how colorful the small business landscape is, and also how important small businesses are to our way of life.
Most Americans Work for a Small Business.
The U.S. Small Business Administration states that 55% (about 75 million people) of the U.S. working population works at companies with 500 or fewer employees. Not only that, small businesses account for 66% of all net new jobs since the 1970s. The trend is expected to persist as major corporations continue to export and eliminate jobs (4 million since 1990) and small businesses continue to create them (8 million since 1990). Small businesses are and will increasingly be a pillar of American society.
Small Businesses are an Indelible Part of the American Economy.
If you grabbed coffee on your way to work, bought lunch, took your laundry to a local cleaner, or scheduled a dog-sitter, chances are you patronized a small business at least once – maybe without even realizing it. Just because a business has national recognition doesn’t mean that it isn’t a small business. Stamps.com, Nathan’s Famous Hotdogs, and Radio Flyer are recognizable to just about everyone, yet each have fewer than 250 employees. Small businesses give the US economy dynamism and flexibility. By their nature, small businesses can often respond more quickly and fluidly to changing consumer demands and market conditions. They are also critical entry points into the economy for groups that may have been historically marginalized by large corporations.
Starting a Small Business is Tough, but Worth It.
According to the Small Business Administration, about half of all employing new businesses survive the first five years. Whether you want to look at that glass as half full or half empty is up to you, but if you can get over the initial hump, owning your own business can be incredibly rewarding. The SBA reports that average annual receipts for “non-employer” businesses (i.e. those with no employees—just an owner) is $44,000 – not too shabby when coupled with the obvious benefits of being your own boss; and the gains can be steep from there – the average annual receipts for businesses with one to four employees is around $400,000.
Have a Business Idea and Want to Take the Plunge?
Starting a new business isn't a cake walk. Raising the initial capital and applying for business taxes, permits, and licenses at all levels of government can be a daunting endeavor. Luckily there are companies that help make the process a breeze. LicenseLogix, a small business itself, helps new businesses easily form, register for state and local taxes, and obtain all of the licenses needed to operate. Whether you’d like assistance gathering the relevant information and applications so that you don’t miss anything, or whether you’d rather outsource the whole ordeal and just sign on the dotted line, give LicenseLogix a call and you’ll be sure to come away with an edge.