Small Business is a rich Resource of Innovation and Employment generation in the United States. A marvelous combination, indeed!
Fair Winds Are Blowing, too!
Yes, entrepreneurship is on the rise in America. According to a report released by the Kauffman Foundation, 558,000 new businesses were created each month in the year 2009. This being the highest statistic in the last 14 years, it reflects a 4% increase over the year 2008. Entrepreneurial America is learning to cope on its own steam in a country severely hit by recession.
The recession has converted job seekers into self-employed entrepreneurs overnight. Adverse circumstances do create entrepreneurial opportunities. Low-end retailers, dollar stores, locally-made products, the green movement, education and preventive health care are a few industry segments which are generating entrepreneurial opportunities today.
The Small Business Administration’s Office of Advocacy states that there are an estimated 29.6 million small businesses in the United States. They employ over half of the country’s private workforce, 40% of which are high tech workers like scientists, engineers, computer workers. This includes the 52% home-based businesses and 2% franchises. They generate a majority of the innovations that come from the United States companies.
USA emerged with the 7th highest Total Entrepreneurial Activity rate (TEA) among 31 countries surveyed in 2003, according to the Global Entrepreneurship Monitor (GEM), a unique large scale long-term project developed jointly by Babson College and London Business School and funded by the Ewing Marion Kauffman foundation. USA had the highest TEA among G7 countries. Americans who opted to start a new business as an opportunity to better their financial condition totaled 9.1%, while only 1.7% of Americans chose to become entrepreneurs due to lack of alternative employment opportunities.
According to the GEM report, entrepreneurs helped expand existing markets by increasing competitiveness and market efficiency. In other cases, they enabled new and unique products or services to be introduced in the markets. No doubt, innovative entrepreneurs have contributed substantially towards the nation’s economic growth.
The buy-local campaign, a voluntary initiative of the American people, has generated mass support for small business owners in the ongoing financial crisis. On the other hand, the government is seeking an increase of $ 2 billion in funds for the Federal Export-Import Bank (EXIM) within the next five years, totaling $ 6 billion. This is meant to facilitate lending to small-to-medium sized businesses, in an effort to help spur their exports. The government hopes to see a 40 % increase in these exports by 2015. The government is looking towards the expanding economies of China, India and Brazil in hopes that businesses there will begin to import technologies from America. While the US already has an agreement in place from its EXIM bank counterpart in India, it is seeking partnership with the EXIM bank of the larger economy of China for this purpose as well.
Time and tide seems to be turning in favor of the SMB sector. This certainly comes after a long spell of hardships and uncertainties. Avail the services of FINTEL, a web-based financial services company, to harness this tide in your favor. FINTEL has worked with the Ewing Marion Kauffman Foundation to develop the largest and most reliable financial database of privately held companies. Our financial data and the analytical tools they power are relied upon by various economic and entrepreneurship researchers, business coaches, Small Business Development Centers and Financial Institutions. FINTEL continues to develop analytical modules for its benchmarking systems. Among the company’s research clients and partners are the Small Business Administration, the Brookings Institution, Advanced Research Technologies Inc. and several other private and public enterprises.