If you’ve ever started a business or have a passion for entrepreneurship, you know that there are many factors to consider. You’ll need to decide whether the product or service you are creating is needed by others, how much financial reward it can potentially bring, and if you’re willing to take the risks that come with starting up your own company.
But a business can be many things, and not all of them are small. Generally, a small business is an independently owned and operated for-profit American company that falls within the Small Business Administration’s strict size standards. These criteria are based on number of employees and average annual receipts, but can vary by industry.
There are 33 million small businesses in the United States, accounting for 46% of all private companies with paid employees. Most small businesses have one or fewer employees, and 85% don’t pay taxes, according to the Census Bureau. Small businesses also play a vital role in our economy and impact the country’s GDP. In a recent Pew Research Center survey, the public said small businesses have more positive effects on society than large corporations, government agencies, schools, and religious institutions.
While the idea of having more personal time and being your own boss can be a driving force for some entrepreneurs, many find that work hours increase, not decrease, after they launch their companies. Still, there is no question that small business drives economic growth and has the power to transform our society in ways big enterprises cannot.