Sometimes we seem to live in a “supersize me” society. People strive to get bigger houses, bigger cars, and bigger overall lifestyles. But when it comes to business, small has a significant impact. In the United States, small businesses often bring about changes to the economy through job creation, innovation, and overall economic growth.
Defining Small Businesses
The United States Small Business Administration defines small businesses based on the type of business, then its annual receipts or number of employees. The Table of Small Business Standards provides in-depth lists of specific industries that might be considered small businesses. Their rating system assesses business based on:
- Size standards in millions of dollars (revenue), and
- Size standards based on the number of employees.
For example, some manufacturers are considered a small business if they have 500 or fewer employees. Others may be allowed up to 1,000+ employees.
Small Businesses by the Numbers
Pertinent statistics regarding small businesses in the United States include:
- Small businesses account for about 65% of new job growth.
- 96% of small businesses have no more than 50 employees.
- About 34 million people work for small businesses.
- Small business generates about 44 percent of all economic activity in the United States.
But as small companies affect our national economy, sometimes they need a little help.
Assistance for Small Businesses
Business owners may benefit from legislation or tap into incentive programs provided by the federal government.
- For example, the Tax Cuts and Jobs Act of 2017 provided tax relief for some small businesses.
- The Affordable Care Act may have given some small companies the chance to offer health insurance to their employees.
- The Small Business Administration (SBA) offers loan programs offered to small businesses.
Other resources that help small businesses bring big changes to the economy include small business grants, private investors, and crowdsourcing.
Small Businesses Benefit from the Advice of Experienced Business Lawyers
Even in a post-COVID world, small businesses play a major role in our national economy and our local economies also.
Do you own or plan to start a small business? If so, talk to an experienced business lawyer about filing formation documents and developing strong contracts.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.