Small Businesses and Hard Facts

Updated: January 18, 2010

Small business is the engine that drives the American economy. Entrepreneurs with a dream combine with those with a desire to be self-sufficient create new companies every day, striving to be successful while making their personal dreams and goals a reality.

Although small businesses are small, their impact on the economy is huge. They, not huge corporations, form the majority of exporters to other countries and they are the employers of more than 50% of all workers in the private sector.

Impressive data on the power of small businesses in the United States should not be emphasized to the point that other data is ignored. For example, about half of all start-ups fail within 5 years. When almost 700,000 business open in a given year, statistics suggest that almost 600,000 will close while bankruptcies number in the tens of thousands. Curiously, business failures are often concentrated in Florida, New England, and in western states.

Small businesses typically employ fewer than 500 people and offer exceptional opportunities to all Americans. Without them and the risks they take, the nation and the economy would be vastly different than it is today.

Click to Enlarge

Featured Research
  • 16 Mistakes to Avoid When Buying a Phone System

    Purchasing a phone system for your business is a major investment. With the average business changing phone systems only once every seven years, it’s important to make the right decision. more

  • 2017 Video Conferencing Trends

    New advancements are also making video more beneficial to a greater range of business areas including marketing, HR, and internal operations. Many solutions are economical, easy to use, and very effective at making communication more personal. more

  • [Infographic] Top 11 VoIP Vendors

    A good VoIP provider will offer additional benefits as well, but many first-time buyers find assessing each option to be difficult. Nevertheless, this is an important step in the buying process because a substandard provider can easily waste both your time and money. more

  • Work Smarter Not Harder with Business Intelligence

    While this may have been true at one time, the days of BI requiring a dedicated team of experts to implement are over. Self-service solutions are making it possible for everyone, including small, local businesses, to easily implement BI in their decision making process. more

  • Best Practices for Contact Center Quality Assurance

    A contact center often brings about a prospect’s first real-time interaction with your company. As such, if it’s not a positive one, they’ll likely look elsewhere for help. With 69% of Americans more inclined to recommend a company to friends and family after a positive customer service experience, you’ll need to exceed expectations on the following fronts. more