Small Business

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The Importance of Small Business

Entrepreneurs and their small businesses play an important role in the economy of the United States. Some people think of small business as the heart of the free enterprise system. Americans are free to try their hands at running their own business and watch their business dreams come true.

Facts about Entrepreneurs

· Keep economy strong by creating jobs




· Provide products and services

· Small businesses employ well over half of all working Americans

· Has helped the United States have a higher standard of living.

· Identifies and meets consumer needs.

· Creates competition between small business and large corporations.

· Creates a range of products and services.

According to the Internal Revenue Service, small businesses account for 44 percent of all the money collected by the tax agency annually. And according to the United States Small Business Administrations Office of Advocacy, between 10 and 15, small businesses created nearly 77 percent of net new jobs, while from 16 to 17, small businesses created about 76 percent of net new jobs.

Small enterprises also produced 55 percent of innovations, twice as many product innovations as large firms, and obtained more patents per sales dollar than large business.

who says the total number of home-based businesses was estimated as 81,0.

Small firms

· Represent more than .7 percent of all employers.

· Employ more than half of all private sector employees.

· Pay 44.5 percent of total U.S. private payroll.

· Generate 60 to 80 percent of net new jobs annually.

· Create more than 50 percent of nonfarm private gross domestic product (GDP).

· Supplied .8 percent of the total value of federal prime contracts (about $50 billion) in FY 001.

· Produce 1 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.

· Are employers of percent of high tech workers (such as scientists, engineers, and computer workers).

· Are 5 percent home-based and percent franchises.

· Made up 7 percent of all identified exporters and produced percent of the known export value in FY 001.



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