Small Business Month, celebrated in May, is a special tribute to honor small business owners, their courage, community efforts, and hard work.
You know that small businesses are the backbone of the United States economy? Yes, according to a 2020 study by the U.S. Small Business Administration (S.B.A.), there are 31.7 million small businesses in the United States. In the last two years, 10.5 million Americans have signed up to start small businesses and created 3.5 million jobs, a record. Currently, there are 56 million workers employed in companies with fewer than 50 employees, which accounted for 45% of all private sector jobs in the first quarter of 2022.
During the pandemic, there was considerable concern about the potentially disproportionate effects that COVID-19 would have on small businesses. However, data shows that small business growth has proven resilient, supported by the implementation of the American Rescue Plan (ARP).
But as the economy transitions to more stable growth, the formation of new businesses and job creation are likely to begin to slow down after this exceptionally rapid pace. While business emergence remains high, the pace of job growth among small businesses slowed in 2022 compared to 2021.
Other interesting numbers about small businesses in the U.S.:
• The numbers don’t lie: small businesses represent 99.9% of all businesses in the U.S.
• They create many jobs: small businesses create 1.5 million jobs annually.
• A one-person army: about 70% of small businesses are owned and operated by a single person.
• It’s very quick to start a business: it takes only six days on average to start a business in the U.S.
• It’s a competitive world: only 50% of small businesses survive the first five years.
Small Business Month is a celebration created by the Small Business Administration (S.B.A.), an institution that helps small business owners and entrepreneurs pursue the American dream. It is a federal agency that provides consulting and credit for small businesses. If you are a small business owner or plan to start one, the S.B.A can be a great source of information for you.
Source: NationalToday and S.B.A