Quick Facts on the Big Economic Contribution of Small Business
In 2005, small business created 79% of new jobs; big corporations, just 21%. And when a large corporation creates a new job, it's more likely to be located overseas.
Long-term economic studies prove small business performance across the U.S., not just in epicenters of technology development. Rural, suburban and urban areas of the U.S. with higher rates of entrepreneurial activity experience an average of ...
- 125% higher employment growth
- 109% productivity gains
- 58% higher wage growth
Small businesses develop 13 times more patents per employee than large companies.
States that provide resources to innovative startups have demonstrated that they can generate up to $23 in state income for every $1 invested.
It's Common Sense
If small business is a proven creator of sustainable jobs, shouldn't Washington direct more funding to the small business community?
We think so.
Why Does Washington Overlook
Small Business?
From Susan Schreter, founder of TakeCommand.org and university educator.
"...I once was invited to attend a fundraising event for a prospective U.S. senator. When I asked the organizer if the candidate would speak to small business economic and tax issues, he said, "Candidly? Probably not. Small business is just chump change. We'll need the support of large corporations to get elected."
I've never forgotten that conversation. Like it or not, these words reflect an attitude among politicians and their advisors that American small business is not worth paying much attention to. Sure, politicians always like to show up at our restaurants and factories during campaign season, but once they return to Washington we are just small -- small news, small voices and small donors who don't have the capacity to employ influential lobbyists.
...So, are we really "chumps?" Maybe in the eyes of a short-sighted poor performing corporate executive, a chump is indeed a business owner who flies coach and continues to invest personal funds to develop innovative products and services, repay business loans, maintain jobs and serve customers in a personalized way. And perhaps a chump is an angel investor who spends considerable time and money to help local entrepreneurs achieve their goals too.
...Looking around at the state of our economy, our nation's declining influence in international markets, the caddy bickering in Washington, and stimulus initiatives that give little more than token attention to the economic potential of small business, I have to wonder. Maybe our over-worked, over-taxed small business community members are chumps because we don't seize the political power of our collective numbers and economic impact.
Here's how I see it. There are about 26 million small business owners, potentially more as unemployed Americans choose entrepreneurship as their new career pursuit. These businesses employ another 58 million individuals who are now learning how much their personal incomes are tied to the prosperity of their employers and the broader economy.
Together we can propose smart, effective government policies. And, together we can also hold our elected officials accountable for poorly conceived policies that won't ever make America stronger, just financially weaker in global markets..."
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startup entrepreneurs and small business owners.
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