When you’re busy running your own small business, you often don’t look up to take stock of what’s going on in the bigger picture of small businessdom. But you’re far from alone as an entrepreneur.
Currently, there are about 28 million small businesses in the US. And these small businesses account for 65% of the new jobs created since 1995.
But What IS a Small Business?
Small businesses come in all shapes and sizes. While the SBA defines a small business as one with fewer than 500 employees, many have much fewer than that. And each sized business has its own needs and interests. For example, a small hotel chain with 400 employees is probably more interested in growth and expansion than the mom and pop grocery store in your neighborhood.
Out of all the US small businesses, a whopping 22 million are micropreneurs, meaning they don’t have any staff other than themselves.
Then you’ve got the home-based businesses: 69% of startups begin as home businesses. Some move into office space as they expand, while others continue to work out of their homes.
What Causes Small Businesses to Fail?
While each failed business has its own reasons for shuttering up, the SBA finds these as some of the most common causes of failure:
– Lack of experience
– Insufficient capital (money)
– Poor location
– Poor inventory management
– Over-investment in fixed assets
– Poor credit arrangement management
– Personal use of business funds
– Unexpected growth
Many of these issues can be prevented with careful planning, as well as access to mentors and small business resources. Speaking of those, here are some of the most valuable resources for business owners:
Your community likely also has incubators, workshops, and other resources (some free, some for a fee) that you can take advantage of as a business owner.
Here’s to small businesses, the lifeblood of our country!