The private sector added 200,000 jobs in July, with small business once again accounting for the lion’s share of employment, according to the ADP National Employment Report.
The number sell themselves that small business in the United States is where you should be putting all your bets! Small businesses with 49 employees or less added 82,000 jobs and of those, small businesses with less than 20 employees added the most with 51,000 jobs. No matter how you look at small business is where to be when it comes to looking for a new career.
Despite all the media attention, both on and offline, big business, the financial industry, and tech start-ups in Silicon Valley seem to get for creating jobs, it’s the businesses on main street that are creating the most jobs. In fact, according to outgoing small business administrator Karen Mills, “Today, there are more than 28 million small businesses in the United States, and those firms create two out of every three net new jobs and employ half of America’s workforce.”
Nevertheless, saying that doesn’t mean much since we know that the barbershop down the street is considered a small business, but so is the high tech computer software company that employs 250 people and enjoys annual revenues of $30 million a year. Mills suggests that the type of business you and I identify with as small businesses, “…approximately 4.5 million are Main Street small businesses. These are the dry cleaners, mechanics, and medical clinics that form the fabric of our communities. Main Street businesses make up nearly 70 percent of the jobs in our country…” She also suggests that sole proprietorships, the vast majority of small businesses in our country, are responsible for 23 million jobs.
So what does this all mean? We need to figure out ways to get more capital to the little guy with big ideas, that the success of country and continual growth is in small business and employing people. It is only through prosperity that true inspiration and "BIG" ideas are made. If people are only worrying and stressing out about finding employment, fewer people will be able to chase the big dreams and next big thing that could be the next Apple or Microsoft of our generation. Most small business loaners are looking for $50,000 or less, much less than the $250,000 threshold the SBA and most banks are geared up to service. If the SBA and the banking industry really want to fuel the American economy, the focus should be streamlining the process, making it easier for community banks to be a bigger part of main street and getting small businesses the capital they need to launch and grow.