Small Business Is the New Big Business
Small Startup Companies Make a Huge Impact on Economy
Aug 6, 2008 Patricia Faulhaber
It has long been said that small business is the backbone of the American Economy. Today, during some of the worst economic times the United States has seen in its history, small business is the new big business. And, small businesses are making the biggest positive impact on the economy.
Deana Nall reported in the summer 2008 issue of PremiereBusiness magazine, “Never before has the American work force witnessed the entrepreneur way emerging as the American way to such an extent.”
Small Business Spurs Economy
Tom Donohue, CEO and President of U.S. Chamber of Commerce, recorded in a recently posted podcast at the U.S. Chambers web site, “Small businesses are propelling the U.S. economy forward.”
Donohue went on to say, “Hiring by small business increased 4.3 percent last year and salaries of small business grew at about the same rate.”
Being one’s own boss and owning a business has long been a dream of many and it remains the desire of, according to Nall’s report, 61 percent of Americans yet today.
Small Businesses that Made it Big
All big business has to start somewhere and most often it is as a small business. Look at IBM, Apple Computer (according to the information posted at computerhistory.org/brochures/compaines.php, Steve Wozniak and Steve Jobs started the company in a garage in 1976), Microsoft Corporation, Starbucks and the slew of recent dot com million dollar companies.
In her newly released book, Once You’re Lucky, Twice You’re Good, (2008 Gotham Books, New York,NY) author Sarah Lacy relates how many of the recent internet companies have been purchased for billions of dollars. One example is given on page one of the book. Chad Hurley and Steve Chen co-founded a small video-sharing company that sold 11 months later for $1.65 billion. The company is called YouTube and was purchased by Google.
One of the most known small-business-making-it-big stories is the often-told story of Sam Walton’s Wal-Mart rise. Walton started by investing $25,000 to buy a Ben Franklin franchised store in eastern Arkansas and eventually opened his own store and built that one store into a national chain of discount stores that continue to dominate the retail market today
Sam Walton’s Ten Rules for Starting a Business
Sam Walton wrote in his 1992 book, Sam Walton Made in America (co-author John Huey, Doubleday, New York, NY) about the 10 rules for starting a business. Although over a decade since printed, they apply to all rising entrepreneurs. The rules are:
- Commit to your business
- Share your profits with all of your associates and treat them as partners
- Motivate your partners
- Communicate everything you possibly can to your partners
- Appreciate everything your associates do for the business
- Celebrate successes
- Listen to everyone in your company
- Exceed your customer’s expectations
- Control expenses better than the competition
- Swim upstream
Small Business Success
People leave their jobs to start their own company for a number of reasons including to reduce stress levels, reduce the daily commute, avoid potential lay-offs, the freedom of being self-employed or the opportunity to make more money.
While today’s economic environment seems less than perfect for starting a small business, there are plenty of success stories out there and contributing greatly to the good economic news. Small businesses are creating jobs, paying livable wages, developing innovative ideas and products and keeping the American dream alive.
Small Business Leaves a Big Foot Print.
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