The world of small businesses is very large and wide. It continues to grow with more than 32.5 million small businesses around the world. These Businesses can range from brick-and-mortar to in-home e-commerce based. A lot of these business courageously started with an idea to be able to control their own time, their own work ethic, their own goals and to break free from the traditional politics of a full-time job working for a big corporation.
The Small Business Administration defines a small business as one that has fewer than 500 employees. This category also includes start up companies, most of which have less than 50 employees. To give a better idea of the number of small businesses in America there are about 38 million businesses to have fewer than 100 employees, and 23 million show to have fewer than 20 employees. That’s a lot of small businesses in America alone
So why are small businesses so important? Small businesses generate about 1.5 million jobs in America. And whether or not small businesses become large corporations, they generate a lot of unique products, continuously generate jobs and have always shown to be part of the US economic growth. Another factor of small to medium size businesses, also known as SME, is they bring knowledge to how to better network, digitalization, global marketing, and global economic growth. Needless to say larger establish corporations tend to learn a lot from these millions of small businesses, not only in America but around the world.
One of the many reasons that people start their own business is the dissatisfaction of working in corporations. That is one thing that larger corporations have yet to learn to inhabit from smaller businesses is employee satisfaction. But how do you give people their own freedom, ability to work wherever, whenever, however and still trust them to do their own jobs accurately and efficiently? You can’t, so you let them start their own business.
You would think with all the small businesses out there, more people would be able to do it, however the biggest fear in starting a new business is the risk of failure. About 20% of small businesses fail the first year and about 50% of startups fail in the first five years. These are understandable statistics for why more people don’t leave corporate America. Those that have survived and continue to create new businesses, also create new jobs and opportunities and have brought great economic pride and growth to our system.
The number one reason most small businesses fail is the lack of cash. Before starting a small business you should take into consideration of what you’re offering as what customers mean. Without the need of a product, there’s no reason for a customer to spend money on it which then has the lack of demand to continue generating or selling supply. The other reason behind an unsuccessful business is not having a team to Work with, being out competed against others in the industry, And cost related issues.
Starting a small business definitely takes a lot of courage and risks but if an entrepreneur can find the right demand and provide an even amount of supply working with a great team, the business can strive and teach a thing or two to larger corporations!