The Value of Small Business

July 23, 2015 | Roger

Big fish standing out from group of small fishAs a business owner, you carry the burden, the buck stops with you, and you work endless hours.

I want to say how much I appreciate you. And I want to remind you how important you are to the economy of these great United States.

I read an insightful description of the value of small business owners. The Indianapolis Stars’ John Ketzenberger, in his article, “Let’s celebrate small business with Independents Day,” said small businesses “…contribute to a diverse and deep marketplace for consumers. They also represent a more resilient economy, one far more likely to innovate and create in terms of product and wealth—for individuals and the communities where they live.”

It’s so true. As Ketzenberger said, “Independent businesses power our communities and make for a more diverse economy. It got me to thinking… here are some amazing and powerful contributions of business owners and their businesses –

We give the consumer options

Small businesses provide consumers options for what and where to buy. When consumers have options, all businesses respond to the pressure of delivering the best quality and price… which is good for the consumer. Further, people in a specific location have wants, needs, and different ways of doing things specific to that location—small businesses locally located are in a position to meet those unique needs.

Innovation                   

Innovation is very possible in small businesses where employees work in close proximity to consumers Small businesses have fewer management layers separating line workers from the business owner. Employees can help the organization grow by sharing ideas that will benefit consumers. In turn, business owners go through less bureaucracy to put employees’ new ideas into action. This reality accounts for why some innovative workers prefer to work in smaller businesses (www.SmallBusiness.Chron.com).

Small business owners are more likely to be involved in their local communities.  And when consumers patronize local small businesses, they’re essentially giving money back to their local community. Thriving local business generates strong revenue which means that the business pays higher taxes. This money is then used for local police and fire departments and schools.

Here’s how influential and powerful we are… !

Small businesses –

  • Account for 99.7% of all of the employers in the U.S.
  • Employ over 56 million people in the US, or 50.2% of employees work at small business.
  • Produce 26% of the export value through their products they ship to consumers in other countries.
  • Pay out 44% of the U.S. payroll annually to their employees, according to the SBA.

Without small business, consumers would get pounded into submission—large corporations would give us what they want us to buy, they’d dictate things—fashion, food, health—everything would look the same and creativity and individuality would be out the window. Small business allows people to express their individualism. That’s the value of small business.

How does this information make you more profitable?

As a business owner, you’re a member of a large though often isolated group. Connect with other business owners regularly. Learn from one another.

Also, identify your niche, or your micro-niches, and use your local knowledge to compete. Small, and local is your bread and butter… and your advantage.