Answer:
To assess the value of small businesses for the United States economy, we first need to know what constitutes a small business. Let's start by observing the criteria used by the Small Business Administration. According to the SBA, a small business is independently owned and operated, exerts little influence on its industry and (with some exceptions) has less than five hundred employees.
Explanation:
Benefits of Small Business
- Most American workers first entered the world of business working for small businesses. Today, half of all American adults are self-employed or work for companies with fewer than five hundred employees. Although the division between those who work in small businesses and those who work in large companies is uniform, small businesses hire more frequently and fire more frequently than large companies.
- Given the financial resources available to large companies, it is expected that they will present virtually all new products that reach the market. According to the SBA, small businesses develop more patents per employee than large companies. Over a recent period of four years, large companies generated 1.7 patents per hundred employees, while small companies generated 26.5 patents per employee. Anthony Breitzman and Diana Hicks.
- A small business is self-sufficiently owned and operated, has little impact on its industry, and has (with minimal exceptions) fewer than five hundred employees.
- The nearly twenty-seven million small businesses in the United States generate around 50 percent of our GDP. They also contribute to growth and vitality in various important areas of economic and socio-economic development. In particular, small businesses do the following:
- Make jobs
- Sparkling innovation
- Provide chances for women and subgroups to achieve financial success and independence.
- Small businesses tend to foster environments that attract talented people to invent new products or improve the way things are done. They usually make faster decisions, their research programs often concentrate and their reward structures often reward the best.
- Small companies supply many of the components that large companies need. They also offer large companies services such as accounting, legal affairs and insurance, and many offer outsourcing services to large companies, that is, they are hired to help with special projects or manage certain business functions. Small companies (such as car dealers) often act as sales agents for the products of large companies (for example car manufacturers).
