Small businesses are the backbone of the American economy. According to the Small Business Administration about 52% of American workers are employed by small businesses. Those small businesses play a vital role in the economy. They are the sources of many of the jobs that are added to the economy each year. The small businesses also hire many older workers and provide a lucrative investment opportunity for investors. A growing number of those small businesses are headed by women. Small businesses are also a popular point of entry into the job market for many workers.
One reason small businesses do so well is their ability to quickly respond to economic conditions as they change. Small businesses also tend to know their customers better and are better equipped to meet the needs of local clients. This presents a great opportunity for investors. By investing in small businesses investors can see their money grow as the businesses blossom. The people who were smart enough to invest in Microsoft, Nike, Ben & Jerry’s and Federal Express while they were small start-ups are now laughing all the way to the bank.
Small businesses are also an important source of technical innovation. Many of the top companies in Silicon Valley were started as small businesses by people tinkering in their garages or trying to fill a need ignored by larger companies. Their hard work, innovations and entrepreneurial spirit have lead many of them to be wildly successful, become major economic forces nationally and internationally and made the people who invested in them rich. Small businesses are the epitome of the American dream. Men, women and children are working to make their business vision a reality.
Investment initiatives like the DC CAPCO Program and others are dedicated to helping small businesses get off the ground. In addition, the American government recognizes the importance of small business and does as much as they can to help them succeed. The Small Business Administration was created by Congress in 1953 with the expressed purpose of providing financial assistance and professional expertise to small businesses to help them to thrive. The government also sets aside about 35% of government contracts for small business. But small businesses also need investors who believe in them and support them financially. This support helps businesses, communities and the national economy to thrive.
New or small businesses with viable business plans provide an excellent opportunity for investors. They can get in on the early stages of a growing company that can go on to pay large dividends.