A recent document “New Firm Creation” substantiates yet again the importance of small business development in the United States. Small businesses currently represent 98 percent of all businesses in the United States and they generate nearly 64 percent of all net new jobs in this country. We’ve often heard the following facts over the past few years, but the recent data continues to emphasize that:
*Small businesses are generally considered to be the first line of employment and thus the initial training grounds for this nation’s workforce.
*There are twenty-nine million small businesses in the United States
*Small business employers provide approximately 44.5 percent of payroll in the private sector
And the most powerful statistic, however, is that 60 to 80 percent of all new jobs come from small businesses. This number fluctuates when some small businesses grow enough to become classified as large businesses, and when new small businesses are created. From 1999 to 2000, small businesses accounted for 75 percent of all new jobs created. By 2010, small businesses account for three quarters of net new jobs in the United States.
The white paper New Firm Creation is a call for improved policy to even the playing field between small and large business when it comes to economic resources. To me, it is also a reminder to help support small business through the resources I have access to, and equally important to use my personal buying power to support small business growth.