Small businesses strengthen the U.S economy

19 December, 2017

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Nancy J. Gonzalez / MexicoNow

Washington, DC.- U.S. small businesses employ more than 57 million people in the country. Minorities, specially Hispanics and African Americans, are opening their own companies and they account more than half of the small businesses ownership in the U.S., according to the Small Business Administration (SBA).

“Small businesses are very important for the well-being of the U.S. economy,” said Allen Gutierrez, associate administrator of the Office of Entrepreneurial Development of the SBA. “Funding and training are the biggest obstacles for entrepreneurs in the U.S. to survive; therefore, we have some programs and training to help them succeed.”

Recent surveys show U.S. small businesses expect stronger revenue this year and many anticipate adding employees.

Furthermore, the optimism of small businesses in the U.S. is in its highest point since the 1980s.

“We haven’t seen this kind of optimism in 34 years, and we’ve seen it only once in the 44 years that NFIB has been conducting this research,” said National Federation of Independent Business (NFIB) President and CEO Juanita Duggan. “Small business owners are exuberant about the economy, and they are ready to lead the U.S. economy in a period of robust growth.”

The Index gained 3.7 points in November, a sharp increase over what was already a near-record performance the previous month. Eight of 10 components posted gains, including a stunning and rare 16-point gain in Expected Better Business Conditions and a 13-point jump in Sales Expectations.

Job Creation plans increased six points last month, providing more evidence of a strong labor market. The number of owners who said it’s a Good Time to Expand rose four points; Inventory Plans increased by three points; Inventory Satisfaction increased by three points; and Actual Earnings Trend moved up two points.

Bruce Purdy, deputy assistant administrator, Office of Women´s Business Ownership at the SBA, said new trend has emerged and more women are now entrepreneurs and small businesses owners.

“This is a fast-growing sector. Women are innovating and creating new start-ups. This is very positive for the U.S. economy,” Purdy added.

Women are the majority owners of 9.9 million businesses which generated US$1.4 trillion in sales and employed over 8.4 million individuals., according to the SBA.

In addition, another 2.5 million businesses were equally-owned by women and men, and they accounted for another US$1.1 trillion in sales and 6.5 million jobs.

As majority and joint business owners, women entrepreneurs generated US$453 billion in payroll for 14.9 million workers through over 12.3 million businesses.

The forecast for women-owned businesses is positive for next year.

Allen and Purdy said the local SBA have programs to help start-ups to excel. These programs can be found on-line and in the local SBA offices.