While companies like Walmart and Home Depot make headlines as bellwethers of the U.S. economy, small businesses create more than 60 percent of new jobs. That’s why tracking the progress of small firms is so important to us. We know companies are a big driver of the economy, but just how much do small businesses contribute to hiring, growth, innovation? The infographic below takes a look under the hood of the small business economy to show you just how much small businesses contribute. Source: http://blog.surepayroll.com/how-small-businesses-drive-the-economy/

1. Small businesses may have the word “small” in their name, but they are anything
but diminutive. The US economy owes a great deal to small business, and the
facts don’t lie—small business is big business for the US economy.
HEAVY HITTERS
Many people may believe that large businesses and corporations are
the strength of the US economy. In actuality, small businesses play a
crucial role in sustaining and growing today's market.
According to the Bureau of Labor and Statistics (BLS):
Between 1992 and 2013, In the third quarter of
41.8% of
employment change
came from
small businesses
Toward the end of
September 2013, small
businesses were responsible
for a net increase of
NOT ONLY ARE SMALL BUSINESSES
INCREASINGLY RESPONSIBLE FOR JOB
CREATION AND MARKET SUSTAINABILITY,
THEY ARE ALSO INCREASINGLY
DOMINANT AS THE AVERAGE FIRM SIZE
CONTINUES TO DECLINE.
174,000 out of
386,000 jobs
THE RISE OF THE SMALL BUSINESS
Over 50% of
businesses experiencing
high growth had under
2013, 30% of net job
growth came from firms
with 1-49 employees
Over the course of two decades, small businesses have become the
norm as larger establishments continue to shrink. Since 1990, small
businesses have added 8 million new jobs to the economy, while big
businesses were responsible for the elimination of 4 million jobs.
Average firm size (number of employees):
10 employees
16.7 17.5 16.6 16.4 15.6
MARCH 1994 MARCH 2000 MARCH 2003 MARCH 2007 MARCH 2010
50%
RETAIL EMPLOYERS ARE NOW
COMPRISED OF SMALL BUSINESSES.
SMALL BUT MIGHTY
Don’t let the name fool you—small businesses are critically important
to the US economy, accounting for:
48.5% of
private-sector
employment
It is estimated that small
businesses in the US number
between 25 and 27 million,
CONCLUSION
99.7% of US
employer firms
Small firms under 500
employees also led job creation
and accounted for
60% of net new jobs
from 2009-2013
98% of
firms exporting
and that 60-80% of US jobs
are created out of
small businesses
42% of
private-sector
payroll
33% of firms
exporting value
Small businesses are also
shown to be more innovative
out-producing large
patenting firms by
16 to 1 per employee
goods
THE NUMBERS DON'T LIE. THE DATA SHOWS THAT
SMALL BUSINESSES CONTRIBUTE HUGE GROWTH AND
POTENTIAL TO THE ECONOMY.
FOR MORE INFORMATION ABOUT SMALL BUSINESSES,
VISIT BLOG.SUREPAYROLL.COM
Created by oBizMedia
Sources
nrf.com/news/economy/how-important-is-small-business-the-us-economy
nrf.com/news/economy/how-important-is-small-business-the-us-economy
www.bls.gov/opub/mlr/2012/03/art4full.pdf
www.sba.gov/oces/headquarters/ocpl/resources/13493
nrf.com/news/economy/how-important-is-small-business-the-us-economy
www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf
www.bls.gov/opub/mlr/2014/book-review/small-business-innovation-and-jobs.htm
www.nbcnews.com/id/45996365/ns/business-small_business/t/how-many-jobs-can-your-startup-create-year/#.VBSpyEuFb1o
www.whitehouse.gov/omb/factsheet/supporting-small-businesses-and-creating-jobs