While big business has long been touted as the backbone of America’s economy, the facts show that many of them don’t survive. The SBA has provided tax leeway and allowances for small businesses, but it’s not clear that these small businesses are bringing in the jobs that are needed to keep the country going. The numbers show that the majority of small businesses are destroying and creating jobs, but the true benefits of small business are not widely understood.
The federal government is a huge buyer of goods and services, and they represent a vital role in the economy. With annual purchases of over $500 billion, over 400 billion of them are made by small businesses. As such, the Federal Government represents a major customer for many businesses. As such, expanding contracting opportunities with the Federal Government is one of the most important small business tools. In fact, the first two years of the Obama Administration saw the highest percentage of federal contracting dollars going to small businesses in over a decade. Those additional contracts are worth nearly $4 billion in business for small businesses.
While there are many reasons for small businesses to thrive, none are more important than the fact that they help America’s economy. As a result, the U.S. is an excellent location to start a business. Various tax breaks and benefits are available to support small business development. In addition to creating jobs, these businesses also contribute to the overall job numbers by creating more jobs. And while they don’t receive the government’s favor like the large corporations, they are still the backbone of the economy.