|
|
|
 « Back
The Exchange - August
2004
Small Business, Big Impact
By Paul
J. Sarvadi
While large corporations usually
generate more headlines and enjoy more visibility,
I believe it is important for all of us to recognize
and honor the vital role that American small businesses
play in our national economy.
Simply put, the small business
community is good for America. Small businesses – generally defined
as those with fewer than 500 employees – serve
as a major source of innovation and job creation, and
they embody the entrepreneurial spirit that helps make
our country great. They also are important service
providers and customers for many of the nation’s
large publicly traded companies.
Remarkably, the goods,
services and technology produced by the American small
business community comprise the
third-largest economy in the world, after the United
States and Japan. Moreover, American small businesses
have helped sustain our economy when it has slowed,
and are now helping us to regain our growth momentum.
Need
proof? Look at the numbers: Small companies represent
99 percent of all U.S. businesses and employ more than
half of the American workforce. Other statistics to
note, according to the U.S. Small Business Administration,
include:
-
Small businesses create 75 percent
of the net new jobs in our economy.
-
Small businesses
pay more than 44 percent of the nation’s
private payroll.
-
More than 50 percent of the U.S.
private gross domestic product is generated by
small business.
-
Small businesses produce 55 percent
of all innovations.
-
Almost 97 percent of exporters
are small businesses.
Small companies
are resourceful. According to the U.S. Small Business Administration, 70 percent
of all
U.S. businesses are started with less than $20,000
in capital. They provide services and products with
fewer people and resources than big businesses, and
can swiftly take products to market. And because
small businesses often know their customers personally,
they
understand consumer attitudes and can respond quickly
to market conditions.
The nation’s small business
community is a vital source of competition, which forms
a foundation for
innovation and fuels our free enterprise system. Entrepreneurs
realize that they are undertaking no small feat when
they decide to launch a business enterprise. But at
the end of the day, they are the first to say that
the effort is worth it.
In addition to their positive
economic impact, America’s
small business entrepreneurs are making a difference
in the lives of people and the communities in which
they reside. Considering that 75 percent of all American’s
first jobs are in a small company, business owners
play a crucial role in bringing new members into the
workforce and teaching them what it means to be a good
employee and employer.
Small business owners also practice
philanthropy in a big way by giving back to their communities.
Along
with their financial assistance, small companies are
often the driving force in organizing employees to
raise funds and provide volunteer support for various
causes.
Because of the many ways small business owners
impact the lives of those around them, they often are
today’s
de facto community leaders. Much of our current culture
is centered on the workplace, and employees increasingly
have come to look to small business owners for leadership,
especially amidst the uncertainties of a post-9/11
world.
Whenever and wherever possible, let’s take time
to salute and support America’s small businesses
and the entrepreneurial dreamers, darers and doers
who run them. It’s a win-win proposition for
them, for the overall business community, and for America.
Paul
J. Sarvadi is Chairman & Chief Executive
Officer of Administaff (NYSE: ASF), the nation’s
leading Professional Employer Organization (PEO), which
serves as an offsite, full-service human resources
department for thousands of small and medium-sized
businesses throughout the United States. For more information,
call 1-800-465-3800 or visit www.administaff.com.
Reprinted
with permission from The Exchange, the New York Stock
Exchange’s monthly publication, August 2004.
 Back
To Top
|
|
