National Small Business Week this year is May 3 through May 9. The Small Business Administration takes this week to celebrate small business owners across the nation, awarding outstanding business owners in each state, as well as recognizing outstanding entrepreneurs. Although these businesses have fewer employees, they have a massive impact on the U.S. economy. This week is an opportunity to recognize the reach small businesses can have and acknowledge the policies in this country that make it possible for women, in particular, to start their own businesses.
There are 35 million total small businesses in the U.S., and nearly one-third, or 12.4 million, of those are owned by women. Only 10% of women-owned businesses have employees. The large majority are, instead, women running their businesses on their own in a way that works for them. Policies and local norms go a long way in fostering the entrepreneurial spirit in American women. From personal trainers to kids markets, the U.S. has long built a culture of do-it-yourself that must be protected and nurtured.
Small businesses come in all shapes and sizes, as long as they have fewer than 500 employees. From the mom who arranges flowers for weddings as a side hustle to the young entrepreneur who saw an opportunity for a coffee shop in her city, small businesses make up 99% of all businesses in the country. They are continually adding value to the economy; in fact, 43.5% of U.S. Gross Domestic Product (GDP) comes from small businesses. The vast majority of small businesses are one-person operations, finding a way to fill a demand in the market.
Women in small businesses play a unique role in our economy. Women-owned small businesses bring in $2.1 trillion in earnings and employ 11.4 million people, and even female employees of small businesses benefit more than at larger firms. A survey found that small businesses have a larger share of women in upper management compared to large businesses, 20% vs just 8%. By providing more opportunities for women to step into leadership roles while maintaining a balance between home life and work, small businesses are better suited to the flexibility that women prefer.
National Small Business Week recognizes the impact of entrepreneurship in the U.S. and the courage of these entrepreneurs who see a demand in the market and fill it, using their own resources, bringing mutual benefits to both themselves and American consumers. From taking on loans to start a business to saving up for years in order to build the capital needed, to sacrificing time with family and loved ones to make the business work, small business owners go beyond the requirements of a typical job to pursue a business they can call their own.
Some states make this pursuit easier than others, such as Wyoming, Florida, or Texas. States that have no income tax and low or no corporate tax encourage small businesses to thrive. Meanwhile, federal tax policies in the Working Families Tax Cuts—such as the qualified business deduction, 100% depreciation on business assets, and simplified reporting requirements—are making it easier for small businesses across the country.
Bottom Line
Small Business Week is an opportunity to support your local businesses and recognize the value they bring to the economy. The U.S. must continue wise deregulation to make the burden on small businesses lighter, as they bring jobs and services to their communities.