Unified Technology Blog

Small Business and the Economy

on May 23, 2017 No comments

 

There are several pages on Facebook where growing companies can post employment opportunities. It seems there are positions open for people who are qualified to do the work. Most of the positions are for skilled tradesman, but there are also schools, healthcare companies and tech companies who are searching for people to fill their vacancies. I belong to a local BNI chapter, and at least once a month one of the businesses in my chapter asks for referrals to people in their field who may be looking to move to a new company.

As a business co-owner, I always have my ears open for people who may be looking for something that aligns with our company goals here are Unified Technology Solutions as our firm continues to grow, but this post is not about that. Rather it’s about how small businesses help to grow our economy here in the United States. Why would I write about this subject? For one, it’s because most of my current clients are small to medium sized businesses. Two, because I am not certain that small business always gets the respect it deserves.

originally posted by  Goldman Sachs:

““….But just how important are small-business owners to the economy, especially when compared to big corporations whose employees number in the hundreds of thousands?

Turns out, they’re pretty important.

A 2015 report by the U.S. Small Business Administration showed that small businesses (defined as firms with fewer than 500 workers) account for 56 million employees annually, or almost half of the nation’s private workforce. More than two-thirds of these small businesses have fewer than 100 employees, and the largest pool of small businesses are those with 20 or fewer employees.

Although large corporations are responsible for the lion’s share of employment in the United States, when it comes to actual job creation, the picture is very different. According to a 2010 study by the National Bureau of Economic Research, smaller businesses created more jobs than larger ones did between 1992 and 2005. Likewise, a U.S. Census report from 2012 showed that up to 70 percent of gross job creation is attributable to startups and new firms.

Intuitively, this makes sense; once a company reaches a certain size, it will slow down and eventually stop growing, which limits its ability to take on new hires. The economic factors at play vary from company to company, but the usual culprits that lead to stagnation, according to Ron Ashkenas, a financial consultant from Schaffer Consulting, are market maturity, where demand ceases to outpace supply; a lack of innovation; and the law of large numbers, where each percentage of increase in overall revenue requires a much larger customer base. Small businesses have a much easier time growing because each new client represents a much higher percentage of a vendor’s overall revenue, which often allows the firm to grow at an exponential rate.”

Here in the Vero Beach area, we service and support small to medium sized businesses. Small business is where people work when you live in a city the size of Vero Beach, or Sebastian. But we also see, to our great pleasure, those small businesses growing and thriving. Perhaps one day, more than a few of them will be bustling, growing big businesses. You never know. And Unified Technology Solutions will grow right along with them.

Your IT Guys

 

 

Your IT GuySmall Business and the Economy

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