Is your business contributing to America’s growth?
Al Gore once said that small business is the engine that drives the economic growth of America. Defined by the Small Business Administration (SBA) as any business with less than 500 employees, small businesses still make up a large majority of the economy. Most big companies started small, often in someone’s garage or apartment. Steve Jobs, Michael Dell, Bill Gates and Sam Walton are just some of the entrepreneurs who came from humble beginnings.
When it comes to success, size does not matter and small businesses prove that over and over. In the United States, small business generates over half of the country’s domestic products and account for as large of an influence on economic growth as the large companies do. They also generate more jobs, about 64% of the entire economy and represent the majority of employers.
Small as they may be, they are surprisingly the leaders in innovation. You’d think that big business would be responsible for all new products, but that is simply not the case. Small businesses own 13-14 times more patents than big businesses, or a whopping 26.5 patents per employee. The large corporations lag behind at 1.7 patents per employee only. Most recent innovations such as the zipper, specialty oral cleaning products and DNA fingerprinting were all introduced by small companies. They’re also better at reinventing the wheel; Jeff Bezos changed the way books are sold when he started Amazon.com, and in the process revolutionized e-commerce.
At the same, small businesses have opened more opportunities for minorities and women. There are now many more members of minority groups who own a small business.
As you can see, Al Gore is right. Small businesses play a big role in powering the economy. Without them, the United States economy would look very different and not in a good way.
Be that as it may, starting and growing a small business is not as easy as it sounds. Although about 500,000 of them are opened every year, half of them close in a year or two. The last recession sent a lot of them into a tailspin and only a few have managed to stay afloat. The most common reason for their failure is lack of resources. Because they are small, large banks are hesitant to extend loans to them. Thankfully, there are companies like First Capital Business Finance willing to lend a hand to small businesses. With a small business loan, you will have access to cash reserves allowing you more flexibility in planning for your company’s growth. Unlike traditional banks, First Capital can approve your loan in as fast as two days and instead of worrying about financing, you can concentrate instead on growing your business.
Not all debt is bad debt; a loan that lets you grow your business can be good debt. Most millionaires followed their dreams using some sort of financing. If you want to be another Bill Gates but do not have the means, consider getting a business loan from First Capital Business Finance. Call now and discuss your plans with them so you can finally fulfill your dreams.
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