What is special about small business?

Small Businesses: The Backbone of the American Economy

Small businesses play a pivotal role in the economic fabric of the United States. They are not only major contributors to job creation, but also drive innovation, support local communities, and embody the spirit of the American dream.

Job Creation

Small businesses are the primary drivers of job growth in the United States. According to the U.S. Small Business Administration (SBA), small businesses created 62% of the new jobs between 1995 and 2020. This amounts to a staggering 12.7 million jobs, far exceeding the 7.9 million jobs created by large enterprises during the same period (Forbes, 2022; SBA, 2019).

Economic Activity

Small businesses contribute significantly to the overall economic activity of the country. In the United States, small businesses accounted for 44% of the economic activity in 2019 (SBA, 2019). They generate revenue, pay taxes, and stimulate local economies through their operations.

Local Impact

Small businesses have a profound impact on local communities. They provide jobs, products, and services that are essential to the well-being of residents. When people shop at small businesses, a larger portion of the money stays within the local economy compared to shopping at larger businesses (Elavon, 2023). This helps support local businesses, create jobs, and improve the overall quality of life in the community.

Innovation and Adaptability

Small businesses are often more agile and adaptable compared to larger corporations. They can quickly respond to market changes and customer needs, leading to innovation and new solutions. Small businesses are known for their ability to bring fresh ideas and approaches to the market (Business News Daily, 2023).


Small businesses are the backbone of the American economy. They create jobs, drive economic activity, support local communities, and foster innovation. By supporting small businesses, we not only strengthen our economy but also preserve the American dream of opportunity and success.



What makes small businesses special?

Small businesses are special because they are the backbone of the economy, creating jobs, driving innovation, and supporting local communities. They are also more agile and adaptable than larger corporations, allowing them to respond quickly to market changes and customer needs.

How do small businesses contribute to the economy?

Small businesses contribute to the economy by creating jobs, generating revenue, and paying taxes. They also support local economies by providing products and services that are essential to the well-being of residents.

What are the benefits of supporting small businesses?

There are many benefits to supporting small businesses, including:

  • Helping to create jobs
  • Stimulating the local economy
  • Preserving the American dream of opportunity and success

How can I support small businesses?

There are many ways to support small businesses, including:

  • Shopping at local businesses
  • Eating at local restaurants
  • Using the services of local businesses
  • Investing in small businesses

What are the challenges facing small businesses?

Small businesses face a number of challenges, including:

  • Access to capital
  • Competition from larger businesses
  • Government regulations
  • Economic downturns

How can small businesses overcome these challenges?

Small businesses can overcome these challenges by:

  • Developing a strong business plan
  • Marketing their products and services effectively
  • Providing excellent customer service
  • Building relationships with other businesses and organizations
  • Seeking government assistance when available

What is the future of small businesses?

The future of small businesses is bright. The number of small businesses is growing, and they are becoming increasingly important to the economy. By supporting small businesses, we can help to ensure that they continue to thrive and contribute to our communities.

What are some examples of successful small businesses?

There are many examples of successful small businesses, including:

  • Apple
  • Google
  • Microsoft
  • Amazon
  • Starbucks