In preparation for our Community Tap night, which provides revenue to the Downtown Revitalization Fund, we thought that it was important to stress the significance of shopping locally and supporting small businesses,
Here are some fun facts that you may or may not know about small businesses.
Small but mighty
The national media coverage of business centers on the "big names" -- Apple, Microsoft, Google, etc. However, small business owners make up an overwhelming majority in the business sector.
- There are 28 million small businesses in the USA, which outnumbers corporations by a 1,162:1 ratio.
- Of those 28 million small businesses, 70% of the businesses are owned and operated by one individual.
- Small businesses employ 57% of the USA's private workforce.
- Small businesses pay 44% of the US payroll tax.
- If the small business work force founded its own country it would be bigger than 224 other countries. It would be roughly the same size of Iran. This imaginary country would be the 17th largest nation in the world.
Tough times for the little guys
Although small businesses are a significant force in our national economy, the life of a small business owner isn't as romantic as it may seem.
- For every two jobs produced by a large national chain that moves into a community, three small business jobs are lost as a result.
- Only 50% of businesses make it past five years of operation. Nearly a quarter of businesses fail within the first two years.
- On average, a small business goes bankrupt every 8 minutes in the US.
The road to recovery starts with small businesses
Despite our nation's financial hardships, small businesses still remain the driving force behind our economic recovery.
- On average, 60 to 80 percent of new jobs come from small businesses.
- Of every dollar, 65 cents spent at small business is reinvested back into its local community as compared to 34 cents spent a larger, national chain business.
- A study conducted in Austin, TX found that an average of $100 spent at local bookstores produced $45 worth of local economic activity, and $100 at a larger chain store like Borders brought only $13.
- Despite the recession, communities with "buy local" campaigns yielded a significant amount of growth in comparison to communities without such a campaign. In 2010, communities with a "buy local" initiative witnessed a 5.6% average increase in revenue, while communities without only increased 2.1%.