Small businesses are the lifeblood of the U.S. economy. They create two-thirds of the internet new jobs and also the largest number of U.S. Innovation and Competition Drive. A new report shows a 44 percent share of U.S. economic activity. The U.S. government is one of the largest buyers of products and services within the world. Although the federal government spends billions of dollars every year on purchases from small businesses, those deals do not reach small businesses enough, especially in rural areas to benefit unequally from the opportunity to compete. The committee is working with the SBA to expand contract opportunities for small businesses in communities where there is a shortage of small businesses owned by minorities, women, and experienced owners, along with financial investment and long-term unemployment. Millions of people who started businesses in the United States created the business world as we know it today.
Hiring Local Workers
Small businesses contribute to local economies by bringing growth and innovation to the business established community. Small businesses can help stimulate economic process by providing employment opportunities for people who cannot find employment through large companies. Small businesses attract talent that invents new products or implements new solutions to existing ideas. Large businesses also often have the benefit from small businesses within a similar large community, as many large companies trust small businesses to perform various business functions through outsourcing.
Depending on the financial resources available to large businesses you should expect them to introduce almost all new products that will touch the market. According to the Small Business Administration, small companies develop a lot of patents per worker than large corporations. Within the last four years, massive companies have made 1.7 patents per hundred workers, whereas little companies have obtained 26.5 patents per hundred workers. Even little business owners are adept at finding new ways to try and do previous things. According to an SBA study, the supportive surroundings of small companies are 13 times more innovative per worker than the less innovative-friendly surroundings throughout large corporations traditionally operate.
Keep the Money Local
Small businesses usually strive to keep as much business as possible, locally. This means working with and supporting fellow small businesses, using as many local products as possible, and more. This vision will help stimulate local economies. It also benefits the whole society. The success of local businesses means more local tax money, which can help improve schools and other local services. Money spent on large, chain businesses is very rare in society, with small businesses keeping a large percentage of their profits and diverting them to other community endeavors.
Access to Capital
According to the National Small Business Association, 41 percent of small businesses say an absence of capital affects their growth potential. For America’s mainstream businesses, access to capital means, the difference between renting or leasing. The Small Business Administration (SBA) flagship program strives to provide small businesses with a variety of financing options to start or grow their business.
The tax code is too long, too complicated and it creates a burden for small businesses across America. According to the National Taxpayer Advocate Service, small businesses comply with IRS regulations for 2.5 billion hours each year. For entrepreneurs, time is one of their most worth resources. Every hour they spend filling out forms or navigating the rules of chaos they do not think about marketing their products or growing their business. The committee will support reducing the tax burden on small businesses so that they can focus on the things they do best; creating jobs and growing the economy.
Small businesses that grow into large businesses often live in the community in which the business was originally established. A large company headquartered in the community can help create jobs and stimulate the local economy, creating a market that will support the growth of additional small businesses. Small businesses take benefit of the power to support one another, the greater the potential to make a thriving local community. This mutual support is useful even in difficult times. If a local business is struggling, community members can band together to help get the struggling business back through a fundraising campaign or through old-fashioned oral appeals. It is hard to imagine a large company producing this kind of energy and support. Hence, proving to be a boon to the American economy.