Small businesses are a vital part of our economy, representing 99.9% of all firms and employing 59 million people. They drive innovation, create jobs, and play a critical role in our nation’s economic resilience. But they also face challenges, including limited resources and susceptibility to market pressures.
The success of a small business often depends on how well it can adapt to change, innovate and reach new markets. Many small businesses have a more personal relationship with their customers than large corporations, and as a result can respond to changing market demands more quickly. And unlike larger businesses, small businesses can adapt their operations to meet the needs of local communities.
To qualify as a small business, a company must meet one or more of two size standards established by the Small Business Administration: number of employees and annual revenue. The precise threshold varies by industry. Small businesses can take on a variety of legal forms, from a sole proprietorship to a privately owned corporation. They must be independently owned and operated, physically located and operated in the United States or its territories (with some exceptions) and not be nationally dominant in their field.
Many successful small businesses are built on the backs of passionate entrepreneurs who believe in their vision and are willing to work hard to turn it into reality. For example, Sara Blakely started Spanx with $5,000 and the idea to cut the feet off pantyhose to make shapewear that fit better under white pants. With a little luck and a lot of perseverance, she turned her small business into a global success.