The month of May has been designated Small Business Month, a national recognition of the many contributions small businesses make to the American economy. It has often been said that ‘as small business goes, so goes America,’ but many are unaware of just how significant that statement is. The Georgia Minority Supplier Development Council is part of a national network of corporations, Minority Business Enterprises (MBEs) and industry experts who advocate for the inclusion of minority-owned businesses in corporate and government supply chains. It is worth noting, however, that the majority of the 1,200 minority businesses the GMSDC represents are also small businesses, which makes it equally important for the Council to celebrate Small Business Month, as well.
Small business is actually big business, according to the numbers. While all of us are familiar with the high-visibility, iconic global brands that make up the Fortune 500 and dominate the airwaves with their advertising, our collective understanding of the sheer scope of America’s small business community might be less complete. The hard truth is that any analysis of the American economy that does not start and end with small business is not telling the whole story. Every meaningful statistic tells us that small business truly is the straw that stirs the American drink.
There are more than 33 million small businesses in the US, representing some 99% of all firms nationwide. These companies employ well over 60 million Americans, roughly half of the entire private sector workforce. Franchises represent almost half of all small businesses, with the Professional Services/Real Estate category constituting the largest single sector of small employers. The average annual revenue of a self-employed business is roughly $50,000, while firms with four or more employees realize average revenues from $300,000 into the billions, depending on the number of employees.
New small business owners most often cite the desire to be their own boss and dissatisfaction with corporate America as the primary motivators for starting their companies. Small businesses create 64% of the new jobs and account for 44% of the nation’s Gross Domestic Product. Small business is not just a force to be reckoned with, but clearly the single most powerful entity on the American economic landscape.
Small Business Month began more than 60 years ago, with a presidential proclamation that established Small Business Week as the first week of May, which has been set aside by every administration since 1963. Over time, local municipalities gradually extended the celebration to include activities throughout the entire month, which led to the expansion of the national commemoration. Today, there are events, conferences, memorials and celebrations across the nation throughout the month of May, which is only befitting such an impactful segment of the business community.
The lion’s share of the 1,200 MBEs the GMSDC represents are classified as small businesses, according to the US Small Business Administration guidelines. Although primarily a minority business advocacy organization, the GMSDC’s portfolio includes programs open to all small businesses in Georgia, including the Council’s flagship mentoring program, the Georgia Mentor Protégé Connection. Hundreds of GMPC alumni, from all backgrounds, have gone on to win major awards, land significant contracts and build sustainable, highly successful small businesses. We salute Georgia’s amazing small business owners as we celebrate Small Business Month. Thank you for your many contributions.
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