Small businesses play a crucial role in supporting the economy and preventing it from collapsing by providing employment opportunities, generating income and taxes, and driving innovation. They help create a diverse and competitive marketplace, foster entrepreneurship and contribute to local communities. Additionally, small businesses can adapt quickly to changing market conditions and consumer demands, making them resilient and essential in times of economic downturns.
There were 4.76 million job openings in November at businesses with 1 to 49 employees. What does this mean for the economy? In spite of economic woes within the United States and large corporations laying off multitudes of employees, small businesses are still hiring. Small businesses contribute to a whopping 65% of the economy, therefore, even as the big players are taking a hit, the smaller businesses are what actually drives the majority of the economy.
The robust job numbers stemming from small private businesses are the only reason the United States is not in a full-blown recession. This doesn’t mean that it cannot happen, it just means that the current data does not support the premise of an economic recession, and it is all because of small businesses.
According to Business Insider, The US added 223,000 jobs this past December. Unemployment rates shrank from 3.6% in November to 3.5%, according to Bureau of Labor Statistics data.10.5 million jobs are waiting to be filled. Most of these jobs waiting to be filled are in the small business sector. This data can be confusing to some who believe that what affects large corporations will affect small business also. This is not true.
The data shows a boom in small businesses likely to employ workers, suggesting that job growth could keep going well into the future. This positive economic outlook helps to stimulate confidence in the economy and can help stave off a recession. Small businesses, especially those with needed products and services, can thrive in an economic downturn even as the larger corporations are laying off huge numbers of employees. The job growth in small business means that more opportunity exists in small business than in the larger corporate rat race. This can help job seekers land the position they are looking for in areas they have not considered.
When reading about the downturn in the economy, it could prevent people from starting small businesses. Small business is so important to the economy, and it is what is keeping the economy from sinking into a recession. If you are thinking of starting a small business, don’t hesitate. Just because the larger corporations are the ones taking a big economic hit at this moment in time, it should not prevent you from starting a small business. Small businesses are not taking a big hit right now and are an important part of keeping the US economy out of a recession. Get your new business idea together and get your new business started. Don’t let the overall data discourage you because when we look at the details, we can clearly see that the small business sector is what is keeping the economy from going into a recession.