Small businesses are more than just a quaint local boutique shop or a food truck. They are engines for economic growth, innovation and job creation in the United States. They may sometimes face challenges from shifting markets or large corporate competitiors, but small businesses continue to deliver impressive value throughout the entire economy.

The Backbone of American Commerce

Small businesses make up over 99% of American businesses, according to figures from the Small Business Administration (SBA). As of 2024, there were 34.8 million small businesses employing over 50 million people. These firms have driven over 61% of new job growth since 1995.

The SBA defines small businesses as independent operations with fewer than 500 employees. Though small individually, they represent a significant portion of America’s economic activity, accounting for roughly 43.5% of our nation’s gross domestic product (GDP).

Your Support Makes a Difference

Supporting small businesses creates momentum that carries over into the entire economy in several ways:

Job Creation and Economic Stability
Small businesses are major employers. By supporting them, you help sustain jobs within your own region or community. When people have stable employment, they spend more money, which in turn supports other local businesses and services.

Encouraging Innovation
Small business often brings unique products and niche services to the market. They’re nimble and can quickly adapt to changing consumer preferences. This leads to the development of new industries and economic growth.

Community Engagement
Local businesses often contribute to the communities where they are. They frequently support local events, charities and city initiatives and may be more plugged-in to the needs of their areas than national chains whose decision-makers may be far away.

Supporting small businesses is a powerful way to contribute to the economic health and growth of your community. By choosing to shop locally, you help create jobs, foster innovation and promote community strength, even as your dollars boost the national economy. To those entrepreneurs out there, we salute you this Small Business Month.

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Sources:
https://www.forbes.com/councils/forbesbusinesscouncil/2024/05/06/why-small-businesses-matter-to-all-businesses
https://advocacy.sba.gov/2024/07/23/frequently-asked-questions-about-small-business-2024
https://advocacy.sba.gov/2023/03/07/frequently-asked-questions-about-small-business-2023
https://www.uschamber.com/small-business/small-business-data-center https://www.library.hbs.edu/working-knowledge/why-small-businesses-deserve-more-credit

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