At the time of elections it’s one of the most common things to see the presidential candidates harping on the importance of small businesses and the need to promote them. Of late small businesses have been touted as the development plank required to garner votes and support. Actually there still remains considerable doubt regarding the reliability of small businesses as the next economic growth factor. This is why it has become all the more important that you understand what exactly propels a slow economy back on the fast track of development.
The Role of Small Business in an Economy
Small businesses happened to gain popularity right before the onset of the Great Recession of 2008. The workforce culture was hence influenced by the commercial interests of all local organizations as well as the public in general. Now, the Small Business Administration has recently discovered that almost 30 percent of the total start ups that have been operating in the country happen to be currently owned and run by female entrepreneurs.
Now, with such a promising show by the entrepreneurs as well as self-employed professionals, it’s more than natural that everyone would expect better performance from them so that the resurrected economy doesn’t shut down. However, worth concern is the fact that not all remains fine in this part of the economy. This is all the more evident from the fact that the rate of employment generated from small businesses has dwindled over the past year. In spite of such concerns small businesses continue to have an edge over its larger and more diversified counterparts.
The Dwindling Output of Small Businesses
Small businesses essentially require a good amount of breathing space for there’s hardly much that they can do by themselves as far as pushing the economy forward is concerned. With small business entrepreneurs getting increasingly worried about the stiff competition it faces, there’s not much it can do on the progressive front.
So you see whether or not small businesses would be the forerunner of the US economy would be a rather dicey question to answer at the moment; but if put to good use, then it can go a long way surely.