Zoda Design Blog
The Importance of Small Business
To survive in today’s economy, a small business has to meet the supply and demand of consumers. Even though small businesses may not produce the same amount of money that large businesses do, they are still essential to the growth of an economy. Basically, when an individual patronizes a small business in the local community, it generates revenue. That revenue is put back into the local community by way of paying taxes. In turn, these taxes will be used for local police and fire departments as well as the schools. Even though some products that are sold through small business may be more expensive, it is always the best bet to invest in your local communities.
According to the website of the White House, as of 2009, in conjunction with the Recovery Act and the Small Business Jobs Act, the Small Business Administration (SBA) approved 334,815 loans, which contributed almost $163 billion for small businesses. Michigan was also the first state where the investment fund was initiated in order to emphasize the state’s long history of engineering and manufacturing. In addition to the loans, the federal government enacted eighteen tax cuts, one of which eliminates the taxes on capital gains on key investments in small businesses – all of which are essential to the growth of small businesses across America.
There is always a different formula for the success of a business and the possibility that a small business can expand. There are many aspects that aid in the success of a thriving business, such as customer service, savvy marketing, satisfied employees and having a business plan. A company that has a business plan that contains the aforementioned attributes has a better chance at succeeding than a business that does not have a plan. In addition to not having a business plan, there are other facets that contribute to the failure of a business such as not enough experience or funding, poor location, poor management planning and poor exposure.
The bottom line is this: our economy needs small businesses to feed into our local economies. The more successful small businesses that exist in our communities the stronger our economy is as a whole. According to Chron, small businesses contributed to over half of the nation’s workforce in 2006 and even with the 2007-2008 recession and the slowing of small business job growth it continues to expand, making it more important than ever. So if you’re not a small business owner, be a small business supporter. It’s how the American dream can survive and become reality.
Photographer, Guest Blogger