An Economic Engine

We’ve heard that small businesses are the economic engine of the economy.

And depending on where you get your numbers, they collectively employ over 70% of the population and make up just over 50% of the GDP (Gross Domestic Product) of the World (data from Wikipedia). The problem is no one really believes those numbers. They ask, how can a community in which so many people fail each year (about half that start) save our economy?

Well, I can definitely tell you that no company on earth ever started big. Steve Jobs didn’t magically architect the production of the iPhone one day when he woke up by himself. It took him decades to dent the universe. Facebook didn’t happen because Microsoft thought it would be cool to build. was not invented because the US Government mandated that everyone buy from an online store. The one thing all these companies had in common is they all started as a small business, they innovated and they saw a need and filled it. I should also mention that many small business owners choose not to build their companies out to become a mega-corporation and provide for their own income and others around them millions of times over.

It’s all these people who run small businesses day-in and day-out no matter their goal who can be relied on to quietly turn around the economic tide occurring across the World today about our collective economy. Small businesses are occupy every street.

Keep in mind, innovation happens in the small business community and is typically passed up to large corporations. For example, Mint.Com built a great personal financial management platform and was recently purchased by Intuit. This is the corporate circle of life and we need this ecosystem to exist, but should acknowledge its weaknesses.

Heads up! There is a new normal in operating a small business. If you are a small business owner and you are not doing one, and in most cases all of the following your business will ultimately be left behind.

  • Experience and use technology differently
  • Collaborate to build out business
  • Sell by educating
  • Leverage social systems
  • Pay closer attention to financial performance

Ironic that small business owners who have everything to lose if they fail (like their homes and savings to name a few) are the ones who are working like there is nothing to lose to build their businesses.

It is with this picture in mind that Corelytics has set out to launch The 2012 Small Business Thrivability Tour we’re hoping you participate in with us. I personally look forward to the opportunity to participate in the discussions on this road show with business owners, business advisors and vendors serving the small business community.

Don’t forget about small businesses of the World – they may just save us all!

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