Small business in the United States make a compelling 30.2 million businesses. That is an impressive number, but we must keep in mind this is across the entire United States. Small business is responsible for 44 percent of all economic activity in the United States. What do these statistics mean for small business or entrepreneurs thinking about starting a small business?
It means that there is stiff competition for small businesses, and also means that small businesses are an essential part of the U.S. economy. In impoverished areas within the United States, small businesses see more door closures than any other area. Covid closed the doors of small businesses which did not close their doors due to high crime or slow business.
Conquering poverty entails more than just keeping small businesses open in impoverished areas. The social aspect of poverty has to be examined. With a good plan, entrepreneurs can take advantage of different government programs which help them open businesses in impoverished areas.
Tax breaks are always used to bring in new business and these tax breaks attract outside businesses to impoverished areas. These businesses who take advantage of these tax breaks provide employment and a tax base to impoverished areas. The only problem with this setup is that after the tax breaks are over, the business usually moves out to another tax break area. The idea is to foster new business via entrepreneurs who reside within these impoverished areas and plan to work their business long-term. Let’s take a look at some of the long-term options for the entrepreneur in an impoverished area.
HubZone or Historically Underutilized Business Zone is a government program designed to help small business receive government contracts. It is open to everyone but encourages small businesses to do business in impoverished areas.
The SBA 8A program is designed for socially and economically disadvantaged small businesses to gain access to government contracts. After a small business receives 8A certification, the door is open, and contracts come more easily.
SDVOSB or Service Disabled Veterans Small Business Program is designed to help disabled veterans open a new business. Most of these businesses will be opened in low-income areas where the disabled veteran resides. Veterans who are entrepreneurs are taking advantage of this program. They are establishing a reciprocal relationship between their small business and their low-income customers.
There are many government programs available for women and minorities. These programs help women and minority entrepreneurs start their business or fund their business. These programs inadvertently help impoverished areas by women or minorities starting businesses in those areas. WOSB is a government program designed to help women business owners get government contracts.
Small businesses in impoverished areas help conquer poverty in several ways. They bring a tax base to the area that helps the community solve other problems caused by poverty. They also employ in impoverished areas which helps to conquer unemployment and pad the tax base. This raises the community to another level and standard and helps the community grow and thrive while they conquer the existing social issues which plague most of these communities. The government in conjunction with the SBA or Small Business Administration is bringing more government contracts to these areas. Entrepreneurs see the opportunity to grown in impoverished areas while helping to overcome poverty generally.