The SBA (Small Business Administration) is hosting the National Small Business Week event in Washington DC this week. This has become an annual event to pay attention to because depending on which source you read, small businesses (less than 100 employees) employ upwards of 70% of the earth’s population.
Listen to the news, media or Wall Street and hardly anyone is talking about this revenue generating bio mass. That is changing.
It’s easier than ever to start and fail at running a small business
Global companies like ADP and Microsoft and organizations like NFIB (National Federation of Independent Business) have existed for years to provide small business owners almost everything they need to operate a small business. However, roughly 50% of small businesses fail every year. Why? We don’t really know. It could be the product, it could be the people operating them, it could be because they don’t have a fundamental understanding of finances. One thing is for sure – helping reduce this number by 10% on a global scale would improve the world’s economy.
There is low visibility on the total economic impact small businesses have on the global economy
Until now we’ve only been able to access financial performance figures through companies like Dunn & Bradstreet or smaller organizations like Fintel - the problem? This information is based on surveys reported to the US government which are inherently flawed in reality and become out-of-date very quickly in this age of instant information. Start-up companies like Corelytics and Inrix are starting to providing global intelligence about performance that impact financial performance of small businesses – and therefore the larger economy. The more we know about actual trends of real activity and trends, the more we’ll be able to solve global issues within the small business sector.
Transparency is the new black
The impact of technologies from Google and Facebook on a younger generation who now expect total transparency from its leaders is having a ripple effect on the mystique of governments and large corporations. How does this relate to small businesses? As information becomes more accessible, people are seeing that there are more opportunities in a global marketplace to offer a niche product or service. I call it the ‘If they can do that, I certainly can!’ movement. As more people start their own businesses, the greater the need will be for technologies to make global knowledge available and transparent to business owners.
National Small Business Week and The Small Business Tour are just a few of many events engaging small business owners to remind them of their importance to the economy and giving them access to resources – join us in saluting small business owners of the world!