According to a recent report in the Washington Post, small businesses added 117,000 jobs in June, a 60 percent increase over the first five months’ average of the year and the fastest growth since early 2012. Small businesses accounted for more job growth than companies in any other category, making up the majority of the 281,000 jobs created. Construction, professional services and transportation were the fastest-growing sectors.
Small Businesses Are Job Creators
Many people do not realize that small businesses are traditionally the largest job creators in the country. They have suffered terribly as a result of the recent recession, however, and have not cracked the six-figure mark in monthly job gains for some time.
June was the second month in a row that small businesses contributed more than 40 percent of the nation’s job growth.
The ADP defines a “small business” as one with less than 50 workers. However, if we expand the definition to that used by the federal government of fewer than 500 workers, small businesses actually accounted for 83 percent of the job growth.
Why Should We Support Small Business?
There is a tremendous amount of support for small businesses in the United States that is growing every day. People are tired of the “big box store” mentality which, while lowering prices, often skimps on service and quality.
In fact, many people are rediscovering the beauty of shopping locally and supporting home town businesses. This has led to more entrepreneurs being willing to take a chance on a new business, particularly one that is located close to home and serves friends and neighbors.
There are some industries that have always been “home grown” and probably will not change. However, the retail industry, for example, has been very hard on small businesses. With the growth in numbers evidenced by the recovering small business sector, it is important to remember that many of the areas where small business is bouncing back are those in which it is difficult to “nationalize” or create chain stores. Local retail shops are still suffering, and fewer business people are willing to take a chance on a local retail store.
If we can support our homegrown businesses, even if they cost a little more, we will be able to help our friends and neighbors keep their stores and companies alive, even in the depths of a recession.