Small businesses are an essential component of any local economy. They supply sorely needed tax revenues and employ the local workers. Hopefully the small business owner will become wealthy in the process.
Just How Small is a Small Business?
In recent published reports, any company that employs less than 500 workers is considered a small business. According to those numbers, small businesses go way beyond the Mom and Pop shops. In the US, small businesses account for 99.7 percent of all firms hiring employees. In addition, small businesses add to the new job growth and they contribute to the national economy. However, out of those businesses, seven out of ten last for two years or more and only about 50 percent survive for five years or more.