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The Impact of Small Businesses on the U.S. Economy
November 24, 2023
Despite their ‘small’ label, small businesses are far from insignificant in the U.S. economy. Often seen as the economic backbone of the country, their relevance is undeniable as we approach a crucial period for commerce. This is why Fox Businesses explained “why it’s so important to ‘shop small’ on ‘Small Business Saturday’ and every day of the year.”
The 2023 American Express Shop Small Impact Study shared that 88% of small businesses surveyed responded that they “need the support of customers in their community given the current economic environment.”
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Per 2023 U.S. SBA statistics, small businesses make up a massive 99.9% of all businesses, employ close to half of the nation’s workforce, and have been critical in job growth since 1995. They contribute nearly 44% to the GDP, decentralize economic power, and instigate innovation, while constructing healthy competition in the market.
These businesses, however, have faced numerous headwinds in recent years, from COVID-related closures to inflation and supply chain challenges. Yet they continue to persevere, providing unique advantages from specialized products to personalized services.
Alignable, a networking platform for small businesses known for its significant small business research, disclosed in their Q4 Revenue Report a concerning trend among small businesses. According to their survey, more than half of small business owners (52%) foresee a decrease in their revenue by Q4 2023, compared to earnings from Q4 2022.
Small businesses offer a plethora of advantages that are often unmatched by their larger counterparts. With their distinct products, personalized services, and close-knit environments, you have the chance to form meaningful relationships with these businesses. By getting to know the owners and key team members, you contribute to the flourishing of these enterprises. This cultivates a unique connection between consumers and businesses, fostering a bond that is rarely seen with larger corporations.
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