This website uses cookies to ensure you get the best experience. More info

12 Facts to Consider About the BIG Benefits of Small Businesses

Benefits of Small Businesses

Whether you’re a business student, a small business employee or a hopeful small business owner, it’s easy to feel like your work and your dreams are drowned out by the Fortune 500 companies and other big names in business.

These business tycoons may seem to be getting all the attention, but the reality of the small business advantage might surprise you. Small businesses benefit our nation and communities in a big way. More and more, the importance of small businesses in local communities and the national economy is coming to the light.

The little guys, from Mom and Pop restaurants to independent boutiques, are forming the backbone of our nation’s workforce. Keep reading to learn more about the big impact of small businesses.

Get the facts on the small business advantage

As you consider a career working for a small business or have dreams of starting your own, you might be concerned about your chances of success or whether or not you’ll make a positive impact. Don’t be—chances are your fears are unfounded.

We rounded up 12 encouraging facts that shed light on the benefits of small businesses. They might be just what you need to take the plunge and earn that business degree, apply for your first small business loan or even sketch out that business idea you’ve been dreaming about.

1. Small businesses are doing their part to keep the unemployment rate low

Though it’s hard to nail down an exact number, statistics suggest that small businesses account for between 60 and 80 percent of all US jobs! These businesses may only employ a handful of workers, but they add up to a large portion of the job market.

2. There are more small businesses than you may realize

It’s clear from that last fact that small businesses are abundant in the US. But just how many are there? It’s estimated that 25-37 million small businesses small businesses preside in the United States. So if you’re looking to start out your career working for a small business, there are plenty of options out there.

3. You don’t need a huge team to run a successful small business

Concerned that you need to hire employees right off the bat? Don’t be! The truth is that about 22 million small businesses consist of just one person.

4. Small businesses are killing it in retail

Considering starting your own boutique store or working for local retailer? You aren’t alone. Small businesses are rocking the retail market. They’re actually the largest retail employers in the US economy, making up about half of the retail employment market.

5. Small business owners are California dreamin’

Wondering where small businesses have fertile land to grow? In 2012, California had the highest number of small businesses and had the most workers employed by small businesses.

6. You don’t need to break the bank to get started

You don’t necessarily have to take out a huge loan to become a small business owner. There are several small businesses you can start for $100 or less. Think house and landscaping projects, like painting or gardening services. Or go online with app services, like becoming an Uber driver.

7. Social media is helping small businesses make big strides

There are several savvy ways to market your small business without a huge marketing budget. Facebook’s total number of users rose to 1.65 billion, a jump of nearly 60 million over the fourth quarter. Additionally, more than 3 million businesses are using Facebook’s advertising products every month.

8. Mobile devices are the future of purchasing

Will going mobile will help your small business grow? Keep in mind that we spend 174 minutes on our mobile devices each day, with 30 percent of all online purchases by millennials happening on mobile devices.

9. Small businesses have a surprising survival rate

Perhaps you’ve heard that most small businesses fail almost as soon as they launch. You might be surprised to learn that 70 percent of small businesses remain in operation for at least two years. Additionally, 50 percent are still around in five years; 33 percent are alive in ten years; and 25 percent are still thriving fifteen years later.

10. Small business are filling the employment void

Small businesses have done wonders for our economy. Large companies have eliminated a whopping 4 million jobs since the 1990s. But small businesses have come to the rescue, adding around 8 million!

11. Small business encourage inventiveness and new ideas

Small businesses are launching pads for new innovations. In fact, small businesses generate 13 times more patents per employee than large patenting companies.

12. Small businesses have room to grow

Small businesses are not necessarily that small. While there is no universal definition, some classify small businesses as any company with less than 500 employees. So if you see the potential for your small business to grow, that doesn’t mean you still can’t still reap the benefits of being “small.”

Starting small

Now that you know the facts, the benefits of small businesses are clear. They play a large role in our communities and the economy—and there’s a real future for those who start them.

If you’re ready to take the next step in launching a small business, check out our article: 8 Small Business Marketing Tips to Help You Make More with Less.


Megan Ruesink

Megan is a freelance writer for Collegis education who writes student-focused articles on behalf of Rasmussen College. She hopes to engage and intrigue current and potential students.


Related Content

This piece of ad content was created by Rasmussen College to support its educational programs. Rasmussen College may not prepare students for all positions featured within this content. Please visit for a list of programs offered. External links provided on are for reference only. Rasmussen College does not guarantee, approve, control, or specifically endorse the information or products available on websites linked to, and is not endorsed by website owners, authors and/or organizations referenced. Rasmussen College is a regionally accredited private college.

logo-accreditation-acen logo-accreditation-ccne chart-credential-laddering-healthcare-management 0 Credits 90 Credits 180 Credits 48 Credits Start Here HIGH SCHOOL GRADS Start Here TRANSFER STUDENTS Start Here SECOND DEGREE PURSUERS End Here ASSOCIATE’S DEGREE Start Here MASTER’S DEGREE PURSUERS End Here BACHELOR’S DEGREE End Here MASTER’S DEGREE chart-credential-laddering-rsb 0 Credits Start Here HIGH SCHOOL GRADS Start Here TRANSFER STUDENTS 90 Credits Start Here SECOND DEGREE PURSUERS End Here ASSOCIATE'S DEGREE 180 Credits End Here BACHELOR'S DEGREE chart-credential-laddering-rsd 0 Credits Start Here HIGH SCHOOL GRADS Start Here TRANSFER STUDENTS 91 Credits Start Here SECOND DEGREE PURSUERS End Here ASSOCIATE'S DEGREE 181 Credits End Here BACHELOR'S DEGREE chart-credential-laddering-rsjs 0 Credits Start Here HIGH SCHOOL GRADS Start Here TRANSFER STUDENTS 91 Credits Start Here SECOND DEGREE PURSUERS End Here ASSOCIATE'S DEGREE 180 Credits End Here BACHELOR'S DEGREE chart-credential-laddering-rsn 0 Credits Start Here HIGH SCHOOL GRADS Start Here TRANSFER STUDENTS 91 Credits Start Here SECOND DEGREE PURSUERS End Here ASSOCIATE'S DEGREE 181 Credits End Here BACHELOR'S DEGREE icon-colored-outline-bank icon-colored-outline-certificate icon-colored-outline-circle-dollar-sign icon-colored-outline-folder-search icon-colored-outline-hand-heart icon-colored-outline-head-blocks icon-colored-outline-head-cog icon-colored-outline-head-heart icon-colored-outline-health-plus-leaves icon-colored-outline-hospital icon-colored-outline-light-bulb-analytics icon-colored-outline-magnifying-glass icon-colored-outline-monitor-healthcare icon-colored-outline-monitor-paper-search icon-colored-outline-nurse-rays icon-colored-outline-padlock-shield icon-colored-advance icon-colored-arrows-cross-curve icon-colored-build icon-colored-bulb-analytics icon-colored-certificate icon-colored-continual-developement icon-colored-folder-mortarboard icon-colored-globe-pen icon-colored-growth icon-colored-hand-bubble icon-colored-head-blocks icon-colored-head-cog icon-colored-laptop-cbe-skyscraper icon-colored-laptop-webpage icon-colored-location-pin icon-colored-monitor-paper-scan icon-colored-national icon-colored-person-whiteboard icon-colored-police-light icon-colored-prep icon-colored-presenter icon-colored-regional icon-colored-save-time icon-colored-skyscraper icon-colored-state icon-colored-student-centered icon-colored-support icon-colored-world-experience icon-camera icon-filter icon-info-circle icon-mail-forward icon-play-solid icon-quote-mark-left icon-quote-mark-right icon-share-square-o icon-spinner icon-tag ras-logo-flame ras-logo-horizontal ras-logo-stacked icon-bank icon-general-chart icon-general-connect icon-general-degree icon-general-discuss icon-general-email icon-general-find icon-general-hat icon-general-heart icon-general-laptop-building icon-general-laptop icon-general-leader icon-general-map icon-general-money icon-general-paperwork icon-general-people icon-general-phone icon-general-speak-out icon-head-heart icon-mglass icon-scales icon-simple-chat icon-simple-desktop icon-simple-find icon-simple-hamburger icon-simple-phone icon-testimonial-quotes icon-social-facebook-square-colored icon-social-facebook-square icon-social-facebook icon-social-google-plus-square icon-social-google-plus icon-social-instagram icon-social-linkedin-square-colored icon-social-linkedin-square icon-social-linkedin icon-social-pinterest-p icon-social-twitter-square icon-social-twitter icon-social-youtube-play-colored icon-social-youtube-play icon-util-checkbox-white icon-util-checkbox icon-util-checked-white icon-util-checked icon-util-chevron-down icon-util-chevron-left icon-util-chevron-right icon-util-chevron-up icon-util-language-switch icon-util-loading icon-util-open-window-button icon-util-open-window-link icon-util-pdf-button icon-util-pdf-link icon-util-refresh icon-util-x