How Big is Small Business?
Featuring examples of small businesses
Small businesses can be defined as a business that employs less than one hundred employees that are privately owned. However, the government has classified that 99% of business in the US as small, so there are multiple definitions of a small business depending on where you look. Establishments come in all shapes and sizes such as restaurants, beauty salons, and boutiques. Each store is distinct from one another and exists in almost every community.
Every two- thirds or 67 cents of every dollar spent at a small business remains in local communities. In addition, for every ten jobs created in a small business, seven more are created in the community to support the influx of services and products needed for professional and personal use. Small businesses not only support local areas but the nation at large. 60 percent of new jobs are created by small businesses and accounted for 50 percent of America’s GDP in 2015. However, the reality is that only 50 percent of businesses survive the first five years of operation and only one third from that will make it past ten years into operation. Luckily, The Small Business Administration has guaranteed $45 million dollars in loans and helped 20 million small businesses as of 2018.
The use of the internet has allowed small business to thrive within the recent decade. “She Reads Truth” is a spiritually led company based in Tennessee that has utilized both print and digital resources, resulting in a ministry of women from around world. Raechel Myers and Amanda Bible Williams launched the idea in 2012. The company’s mission is to encourage people to read the truth of the Bible by creating professional scripture plans. The digital version is offered through an app and print versions can be purchased online. The app features an electronic Bible, a journal option, and scripture plans.
Small Business Saturday was an initial program started by American Express that encouraged customers to shop locally on November 24 amid Black Friday and Cyber Monday. Small Business Saturday is a nationwide program that incorporates a grassroots and nationwide movement to spur locals to support their community. Professional branding such as stickers and posters have been sent to participating small businesses to spread the word. In addition, the successful utilization of Facebook, Instagram, and Snapchat have helped to promote the idea. According to American Express, only 1,400 contributors participated in 2013 when it was launched. However, in the recent year of 2017; 7,200 contributors were estimated to have joined the initiative. $85 billion dollars have been spent at small businesses since the launch of the program. Heightened awareness and activity have made the initiative a great success that extended into a year-long celebration. Familiar companies such as FedEx, Microsoft, Square, and Esty have supported Small Business Saturday. The program has even branched out internationally to the United Kingdom.
“Latitudes: Fair Trade Store” has taken part of Small Business Saturday for years. Based in Virginia, the company supports products made by impoverished people from other countries who rely on selling goods for their income which seeks to alleviate social, economic, and environmental turmoil. Lee and Terry Owsley had a burning desire to help impoverished people after traveling to Guatemala in 2009. Although, the two did not know where to start. It wasn’t until the owners took a weaving class in Guatemala that gave them the inspiration to start a fair-trade store. The first “Latitudes: Fair Trade Store” was opened in 2010 in Warrenton, Virginia. Years later, another store opened in Fredericksburg and Staunton, Virginia. The store carries an assortment of items such as jewelry, housewares, and other retail needs. The owners believed that “It turned out to be the calling and passion I had been praying about for the next chapter of my life.”
Small businesses surround a multitude of communities and offer a variety of services or products while employing local residents. They also contribute to the economic welfare both locally and nationally. Small Business Saturday has especially maintained high interest in shopping small created with the help of print and digital marketing. “She Reads Truth” and “Latitudes: Fair Trade Store” are both small stores that have not only achieved operation for almost a decade but have impacted people around the world in a meaningful way. I hope you have all taken away key information about small businesses keeping in mind that you may very well be an owner of one in the future.
American Express. “Another Reason to Shop Small on Small Business Saturday: Approximately 67 Cents of Every Dollar Spent at a Small Business Remains in the Local Community.” Business Wire (English), 2018 Spring 11AD
Bach, Natasha. “What Is Small Business Saturday? How AmEx’s Post-Recession Initiative Found Its Place in the Thanksgiving Retail Rush.” Fortune.com, Nov. 2018
Diana, M.Casey. “Small Business Administration (SBA).” Salem Press Encyclopedia, 2018.
Goldmeier, Harold, Ed. D. “Small Business Ownership.” Salem Press Encyclopedia, 2018.
Myers, Raechel and Amanda, B Williams. “About.” She Reads Truth, shereadstruth.com/about/.
Owsley, Lee and Terry. “Our Story.” Latitudes Fair Trade, latitudesfairtrade.com/pages/about us.
