Facts About Small Business

Everyone agrees on a broad level that small businesses vital to the U.S. economy. But most people would be surprised to know what is important. The United States Small Business Administration maintains records and statistics on small businesses in the United States and some of their results are surprising. First, the perception of a typical small business as a mom and pop operations with few, if any, is a staff member not the whole picture. The Small Business Administration shall submit a small business as an independent company with fewer than 500 employees. There are an estimated 23 million U.S. companies that meet this classification. In some smaller cities in the United States, these companies an important source of employment. In fact, as small businesses by the Small Business Administration defines percentage of 99. 7 percent of all employers in the country and employs half of all private sector workers. Over 45% of private sector payroll is produced by small companies. In the last decade small businesses have accounted for 60 and 80% of the new jobs created on an annual basis. Although a large percentage of small businesses in the retail and service sector profits, small businesses are quickly making in the technology sector. 41% of high-tech workers such as engineers, scientists and programmers employed by small businesses. Employees of small businesses produce 13 to 14 times more patents than those of larger companies busy. The Small Business Administration also offers some interesting observations on the survival of small businesses. Two thirds of small businesses survive at least two years of decline by 44% after four years. Most of the factors to support a small company to survive, are known, such as access to capital and ownership level education. However, a less known factor for the survival of small businesses that the company is large enough to have staff. Similarly, obstacles to the creation of a small business include lack of access to capital for start-up and lack of education. However, the main obstacle to the creation of small businesses and a major concern of the current small business owners access to private health insurance. individual health insurance for homeowners is much more expensive than receiving coverage through an employer. If a small employer health insurance can provide for their employees, management and premium package often costs much higher than those of larger companies.