Small businesses are considered small due to their number of employees, not their economic impact. “Small” businesses can have up to 500 employees.
For starters, small businesses provide jobs. The wages, along with taxes paid by employees, have an impact on the economy.
So how big are small businesses? They generate trillions of dollars in receipts a year. It is to the point that they are widely called the “backbone” of the country. Small businesses provide both stability and innovation within our economy.
Small businesses keep impacting our economy by supporting other local businesses, from landscaping companies to attorneys. Consequently, this keeps more money in the area. According to the American Independent Business Alliance, “Independent retailers return more than three times as much money per dollars of sales than chains.” See https://www.bfscapital.com/blog/how-small-businesses-help-economy.
Small businesses also contribute to the community by enhancing neighborhoods, with shops that people can walk to and become closer and committed to the area.
Check out this video, “Economic Truth – Entrepreneurs Drive The American Economy”:
