Economic trends are quickly changing and seem to be in constant flux. One thing is definitely true and has been true for decades dating back to the mid-1900s: The economy of the USA is based on Small Business. While “Big Business” steals the headlines, it is the small business that fuels the US economy. According to the Small Business Office of Advocacy (using data collected in 2019) 78.5% of all US businesses had fewer than 10 employees and 99.7% of businesses had fewer than 500 employees. Most importantly, small businesses employ 47/1% of all “reported” US employees down from 52% in the early 2000s (JPMorgan Chase).
Let’s take a closer look at the benefits small businesses bring to the US economy. While it is true that SBs exert little influence on the GICS Sectors and Industries, the small businesses account for more than 50% of the US GDP. Small business entrepreneurs are responsible for inventing new products as they have their, “finger on the pulse of the American population.” Probably more importantly, SBs “spark innovation” in that big business looks for ways to make it “easy” for them to do what they do, but SBs look for better ways to assist their consumer/customer with completing contracts, purchases, and all other aspects of the business cycle.
Small Businesses also provide greater opportunities for women and minorities who have experienced the “glass ceiling” which keeps them from advancing in corporate America. In 1982, women-owned approximately 2700 small businesses; in 2010 that number now exceeds 7800 and is expected to reach 10,000 by the end of 2023 (annual growth rate of 14%). Hispanic and Black-owned businesses grew from 200 & 250 respectively in 1982 to 2200 and 1900 in 2010. Understanding the needs of respective, cultural communities is paramount to the growth of all small businesses and the numbers do not lie; many of the new businesses focus on the health/beauty needs of the communities (skincare, hair care, and general health products).
While most small business entrepreneurs begin their business to “be their own boss” and to “pursue a passion” (49% combined), many are just frustrated with the corporate grind (37%). They see a need and an opportunity to “make a difference” and so they leap at the opportunity. While the Bureau of Labor Statistics reports that 20% of all small businesses fail within the first 2 years of operation, there is more than a glimmer of hope for young entrepreneurs.
E-Commerce rose by more than 30% in the first 2 quarters of 2020. Globally, sales are expected to reach $6.542T by 2023. In the USA sales have reached $859.29B in 2022 and are responsible for 15%+ of all retail sales. It is here that 10xHealth will make a huge difference for the small business entrepreneur.