Do you realize how much our big economy relies on small business? As we celebrate National Small Business Week, let’s take a look at exactly how much small businesses impact the U.S. economy and more specifically how StreetShares small business owners and veteran business owners make an impact.
Many people think most of the hiring done by U.S. companies and most of the employees are at very large businesses like Google, IBM or Home Depot.
But they would be wrong. Large companies certainly have lots of employees and they do lots of hiring. They also have layoffs, some pretty regularly. In just the first six months of 2016, ten different Fortune 500 companies cut more than 6,000 jobs.
You know who does the most hiring? New businesses. And new businesses are usually small businesses; about 10 percent are veteran-owned small businesses. After all, who comes out of the gate with their first day in business with 1,000 employees?
The U.S. Census Bureau also runs the Bureau of Labor Statistics. In 2016, their Annual Survey of Entrepreneurs, which covers 2014, indicated that 10 percent of all businesses are new businesses.
Seven of every 10 new jobs are created by small businesses and collectively, these businesses also employ more than half of the nation's workforce, according to the SBA. Small business is the engine of job creation and economic growth.
When we talk about the economic impact of small business, we mean it. You’ll see in the infographic below, the impact StreetShares small business members make. StreetShares small business members reported having supported 7,300 jobs in the United States and veteran-owned small businesses have supported 3,700. And these numbers are growing every day. The SBA defines a small business as an independent business with less than 500 employees, which includes most of us.
The SBA reports there are just under 30 million small businesses, almost one for every 11 people in a country of 320 million. They account for 54 percent of all US sales and two thirds of all new jobs since the 1970’s. Since 1990 big business has lost 4 million jobs while small business has created 8 million jobs, according to the SBA.
An investment in small business means an investment in local economies and in job creation.
Access to Working Capital and Small Business Loans
Small businesses are important to our economy and they need access to working capital. Their needs could be for inventory, equipment, payroll or other needs.
Smaller businesses and newer businesses often have a tough time getting the capital they need and usually have to start on a shoestring by maxing out credit cards. Our goal is to help these business owners, including veteran business owners, so they can survive and thrive.
For veteran-owned businesses alone, StreetShares has funded $16 million. These veteran business owners have reported more than $500 million in revenues at the time of funding. All StreetShares members have reported a total of $1.1 billion in revenues at the time of funding. We’re dedicated to funding the next generation of veterans and small business owners with business loans, lines of credit and government contract financing.
Social Finance for Main Street
Small business is the engine that drives our entire economy. Many of these businesses are small town main street style businesses like the local coffee shop, general store, or a local skilled tradesman like a carpenter, plumber or electrician. These businesses don’t just drive the economy, they have a tremendous impact on their local communities.
When we measure the economic impact like in the infographic above, this is really what we mean. It’s not just a revenue or taxable income number. It’s real impact on communities. These businesses are providing jobs and vibrancy to a community and we are proud to support them.See also: Earn 5% Interest While Helping Veteran Small Business
Support Small Business
Fortunately, StreetShares is the social finance community for military and veteran supporters. We’ve created a tangible way for every American to support veteran-owned small businesses. With a Veteran Business Bonds account, any individual can start investing in veteran small businesses with as little as $25. Your money is automatically diversified and put to work funding main street and veteran small businesses. Veteran Business Bonds pay a fixed 5% interest rate and can be accessed at any time, some fees and limitations apply.