Why Are Small Businesses so Important to Our Economy

Why are weeny businesses so important to the American thrift? What are the growth trends for half-size businesses? What are the reasons tail assembly these trends? Will they continue? Give examples of how small business affects the economy of the area where you work or live. Small businesses are considered to be the backbone of our economy mainly because they innovate and create jobs at a faster rate than their larger counterparts. According to smallbusinessnotes.com, small businesses represent about 99.7 percent of all employer firms and have generated 60 to 80 percent of net new jobs annually all over the last decade creating more than 50 percent of nonfarm occult gross domestic product (GDP). (smallbusinessnotes.com). The main growth trends for small businesses today can be classified as Economic, Demographic, and engine room Trends. (Smallbusinesslabs.com). The Economic trends include, the recession driving small business cosmos with people focusing more on cash flow, equal containment, customer retention and survival. With the continued job losses inwardly the larger corporations, people are becoming more move to inception up small and personal businesses and even fail with the governments intervention.

The demographic trends include the uncertainty of bollocks boomers afterlife benefits like social security and retirement incentives. This has lead to their increased interest in starting their own businesses for future security. With limited hope for traditional employment in the future, many another(prenominal) Generation Ys will be forced to either start or work for small businesses. The Technology trends include, Mobile compute which takes it easier to run a small business, cloud-computing which lowers capital costs and turns pertinacious costs into variable costs, and the abundance of Online marketing tools like Amazon, and EBay which make it a lot cheaper than the other traditional alternatives. Small businesses in the area I live have had both demonstrable and negative effects... If you want to get a full essay, bless it on our website: Orderessay

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