For the last four years, we’ve heard that it’s not the best time for small business. Go tackle something a bit more safe before considering starting your own business.
The naysayers should be letting off the gas a bit.
There are many positive reports coming out in the past month that point to a recovering economy, including more banks lending to small businesses, an increase in economic optimism among small business owners and more.
After taking a dip in March (maybe because of higher gas prices), the index of small business optimism gained two point in April, increasing to 94.5, which is the highest ranking it has experienced since December 2007. Yes, right before the start of the recession.
“While the Index remains historically weak, there was good news in the details of April’s report,” said Bill Dunkelberg, chief economist at the National Federation of Small Business. “Job creation plans, job openings and capital spending plans all increased. Hopefully this performance will hold in the coming months.”
That’s a good thing, because small businesses have a big impact on today’s economic landscape.
For National Small Business Week, which runs May 20-26, 2012, many small business blogs are highlighting the impact small business are currently making. Some of those stats include:
Small businesses employ more than 26 percent of the working population.
Small businesses generation $4 trillion in receipts per year.
Small businesses pay 44 percent of total U.S. private payroll.
Small businesses generated 65 percent of net new jobs over the past 17 years.
Small businesses are started by innovators, producing 13 times more patents per employee than large patenting firms.
And that’s just a few statistics. But is it really the best time to start a small business? The simple answer is: yes.
USA Today columnist Steve Strauss, serving as the paper’s small business expert, argues there hasn’t been a better time for small business, in fact. He points to new markets that have opened thanks to the Internet and technology as the driving factor behind reasons for starting a small business.
“Never before in history have small businesses had the ability to work and sell globally, and so inexpensively,” Strauss writes. “And the online, virtual marketplace is limitless.”
While the Internet is certainly limitless, remember that a small business’ forte is the community it operates in. That’s probably why small businesses are so optimistic about the coming months and years for business.
According to a recent Bank of America survey, 42 percent of small business owners expect their local economic conditions to improve, compared to 35 percent that expect the national economy to get better.
While it’s great that optimism is high, how can you guarantee your small business can be successful?
Nothing’s guaranteed. For your small business to be successful, you need to work hard, tireless hours (that same Bank of America survey reported nearly 40 percent of all small business owners say running their business is more stressful than raising children!) But according to a new small business index by Office Depot, 51 percent of small businesses find themselves to be “extremely or very successful.” That has to give you even more confidence and optimism.
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