99.9% of the 27.2 million businesses in the United States employee less than 500 workers. 20.4 million of those are sole proprietorships with no employees. It’s Joe working for himself. 80% of new jobs are created by these small businesses. 97% of all exporters are small businesses. The numbers speak for themselves. Small businesses are the backbone of our country. They are what allow any person with any background to make their own way, and their own fortune. And slackers aren’t allowed. You are not going to make that fortune without putting in long hours, your own money and all of your free time.
As our economy stuggles, the small businesses struggle more. As the large banks get a $700 billion influx of capital, the small businesses are getting nothing. Those that work 9 – 5 corporate jobs in the large investment banks happily remain employed with steady paychecks while those that work 18 hour days in their own companies struggle to keep their doors open.
As my 11 year old son was reading over my shoulder, he innocently asked a question that changed my focus of this particular article: “Mom, what would life be like without small businesses?” My reply was that life would not be good.
“Would Staples still be open?” We had recently purchased school supplies at Staples.
“Yes, Staples is not a small business.” I replied.
“Would Cold Stone still be open? What about EB Games? What about Panda Express and Pizza Hut?”
This made me pause. Everything my son had mentioned was a big business. If the small businesses dissapeared tomorrow, would my son even see a difference in his life?
So we had another discussion on what small businesses we frequent. We own a couple of restaurants, Andrew’s Rib Shack, so those naturally were on the list. Our dream, like many entreprenuers’ dreams, is to someday take our unique cooking style and business model and franchise the concept; to turn our small business into a big business. That’s not happening anytime soon in this economy.
Our dentist is a small business. We frequent a number of independetly owned restaurants. Our accountant, our auto mechanic and our plumber are all small businesses. But to really see the affect of small businesses, you have to look at corporate American and travel up and down the supply chain. Ford may manufacture the car, but many of the suppliers of its parts are small businesses. Many of the dealerships that sell the cars are small businesses. Many of the print shops which print marketing materials for the dealerships are small businesses. Many of the repairmen who maintain the copiers at the print shops are small businesses. When those huge companies go out of business, so do the small businesses that support them. It’s the trickle down theory.
So, to tie this back into the banks, the billions going in the back door from the U.S. Government need to be going out the front door to the U.S. businesses that need the funds. It doesn’t take a rocket scientist to see what will happen if the balance sheet doesn’t even out.
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