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Facts_About_Small_Business

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					Title:
Facts About Small Business

Word Count:
391

Summary:
Everyone agrees on a broad level that small businesses are vital to the
American economy. However, most people would be surprised to know just
how important. The United States Small Business Administration keeps
records and statistics on small business in the United States and some of
their findings are surprising.

First, the typical perception of a small business as a mom and pop
operation with just a few, if any, employees is not the entire picture.
The Small Business Ad...


Keywords:
Small Business, Business Administration, finance


Article Body:
Everyone agrees on a broad level that small businesses are vital to the
American economy. However, most people would be surprised to know just
how important. The United States Small Business Administration keeps
records and statistics on small business in the United States and some of
their findings are surprising.

First, the typical perception of a small business as a mom and pop
operation with just a few, if any, employees is not the entire picture.
The Small Business Administration defines a small business as an
independently business with less than 500 employees. There are an
estimated 23 million businesses in the United States that meet that
classification. In some smaller towns in the United States, these
businesses represent a major source of employment.

In fact, small businesses as defined by the Small Business Administration
represent 99.7 percent of all the employers in the country and employ
half of all private sector employees. More than 45% of the private sector
payroll is generated by small business. Over the last decade small
businesses have accounted for 60 to 80% of all new jobs created on an
annual basis.

Although a large percentage of small businesses are in the retail and
service sectors, small businesses are rapidly making gains in the
technology sector. 41% of high tech workers like engineers, scientists
and computer programmers are employed by small busine sses. Employees at
small businesses produce 13 to 14 times more patents than those employed
by larger companies.

The Small Business Administration also offers some interesting
observations on small business survival. Two-thirds of small businesses
survive for at least two years declining to 44% after four years. Most of
the factors that support a small business surviving are well known, such
as access to capital and owner's education level. However, a lesser known
factor in small business survival is that the business is large enough to
have employees.

Similarly, barriers to starting a small business include lack of access
to start-up capital and lack of education. However, the number one
barrier to small business start up and a primary concern of existing
small business owners is access to private health insurance. Individual
health insurance for sole proprietors is much more expensive than
receiving coverage through an employer. If a small business owner is able
to offer health insurance to its employees, the administrative and
premium costs are often much higher than those for larger businesses.

				
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