As we celebrate Small Business Month in May, it’s the perfect time to recognize the immense contributions that small businesses make to our nation’s economy and communities. Small businesses represent the entrepreneurial spirit that has long defined the American dream, from neighborhood coffee shops to home-based businesses.
This is a time to shine a light on the brave souls who dared to turn “what if” into “what is.” Entrepreneurship is not for the faint of heart. There’s a lot of blood, sweat, and tears that goes into running a small business. Building something from the ground up takes grit and support.
Small Business by the Numbers
Here are the stats. An astounding 33.2 million small businesses are hustling across America right now, according to the U.S. Small Business Administration (SBA). That’s 99.9% of ALL businesses in the country—practically everyone with a business card! Small businesses employ 61.7 million people, nearly half of America’s private workforce. How’s that for making an impact? (U.S. Small Business Administration, 2023).
What’s particularly remarkable is the diversity within this entrepreneurial ecosystem. While the SBA officially defines a small business as having fewer than 500 employees, this spans everything from solopreneurs to organizations employing hundreds of talented team members. And here’s an interesting statistic—businesses with fewer than 20 employees make up a whopping 89.1% of all small businesses nationwide.
Of the 33.2 million small businesses in the United States, approximately 23-25 million are sole proprietorships—that’s roughly 70-75% of all small businesses! We’re talking about the independent contractors, freelancers, gig workers, self-employed professionals, home-based businesses, and one-person retail shops who wake up every morning and say, “Today, I’m the boss!”
The Economic Impact
Photo by Tim Mossholder on Unsplash
This statistic blew me away: small businesses generate a mind-blowing 44% of U.S. economic activity! That’s nearly HALF the economy created by these entrepreneurial dynamos, according to the SBA Office of Advocacy (2022). And that’s not all—they create about two-thirds of all new jobs, driving innovation across virtually every industry.
During economic recoveries, small businesses have historically led the way. Following the pandemic disruptions, small businesses demonstrated remarkable resilience, with new business applications reaching record highs – over 5.4 million new business applications were filed in 2021 alone, the highest number ever recorded (U.S. Census Bureau, Business Formation Statistics, 2022).
Want more reasons to love your local small businesses? For every $100 you spend at a local shop, about $68 stays right in your community, compared to just $43 when you shop at a big box store (Institute for Local Self-Reliance, 2021). That’s money for local schools, parks, and more awesome local businesses. Supporting small isn’t just shopping—it’s community investment with serious style points!
Support for Small Businesses
Support is essential for small businesses. These resources are available to help small businesses grow and thrive.
The Small Business Administration (SBA): Your friendly neighborhood business champion offering loans, grants, and free business advice. Their network includes Small Business Development Centers, Women’s Business Centers, and SCORE—where retired executives volunteer their time to mentor the next generation of business legends (cape-wearing optional).
Community Development Financial Institutions (CDFIs): These financial wizards specialize in getting funds to businesses in underserved communities with flexible terms that won’t make you break into a cold sweat.
SBIR and STTR Programs: Federal grant programs with a passion for research and development—perfect for the “mad scientists” among us trying to build the next big innovation!
State and Local Economic Development Agencies: Your communities offer training, technical assistance, and financing programs tailored to your local business ecosystem.
Industry Associations and Chambers of Commerce: Network with fellow entrepreneurs, access insider resources, and add your voice to advocacy efforts.
Online Learning Platforms: Level up your business skills with courses from Coursera, edX, and LinkedIn Learning—because the best entrepreneurs never stop learning (burning the midnight oil is a common trait).
Photo by Tim Mossholder on Unsplash
Why Supporting Small Businesses is Important
When you choose small businesses, you’re not just buying a product or service—you’re supporting someone’s dream. You’re helping a real person do a happy dance when they see your order come through. You’re supporting the coach who sponsors the local Little League team, the shop owner who remembers your name, and the entrepreneur who stayed up all night perfecting their craft just for you.
Small businesses add character, creativity, and heart to our communities that no algorithm or corporate policy can replicate. They take risks, they innovate, they adapt—and they do it all while bringing unique products and personalized services that make life more interesting and communities more vibrant.
As we celebrate Small Business Month, let’s recognize the vital contribution these enterprises make to our economy and communities. By supporting local businesses year-round—whether as customers, policymakers, or community members—we help ensure a vibrant, diverse economy that works for everyone.
References:
U.S. Small Business Administration Office of Advocacy. (2023). “2023 Small Business Profile.” Retrieved from sba.gov/advocacy.
U.S. Census Bureau. (2022). “Business Formation Statistics.” Retrieved from census.gov.
Institute for Local Self-Reliance. (2021). “Independent Business Survey.” Retrieved from ilsr.org.
It Takes a Village
It takes a village is a phrase that rings true for me. Interaction and care by many is something of importance to small businesses and to so many of us living life.
Speaking of a village, when you are crafting your advance planning, it’s helpful to have help. None of us has a crystal ball to predict what happens when. Because of this, getting your ducks in a row in advance allows you to focus on the situation at hand and be fully present.
I’m happy to be a part of your advanced planning village. Send me an Email or Book Time with Lynn if I may be of help. For additional information about my work, check out @ The Living Planner or @ The Living Planner.
If you’re up for planning your life’s administrative side, consider my book as a resource. The Living Planner: What to Prepare Now While You Are Living © Check it out HERE.
Quote for the week: “When you support a small business, you support a dream.” – Anonymous
Thank you to all small businesses❣️ Lynn
#PlanfortheUnplanned #Can’tPredictCanPrepare