Why Small Businesses Are Rightfully the Backbone of Our Economy

Small businesses are ripe with opportunity. Seeing as how 95% of the businesses in the market are small and medium-sized businesses, they contribute heavily to the economy’s growth and vitality.

The largest advantage of small businesses is their ability to reduce the level of unemployment within the economy. Not only do they create more net new jobs than their big-business counterparts, but they also typically increase the level of job satisfaction for their employees.

Employees at a small business see more direct contact with their executives and thus have more say in the company. Since small businesses are typically more collaborative, that means the manager, team, and customers are all working together on the project, meaning there is greater integration. And with so many opportunities to learn, employees feel closer to the cause since they are adding value while working on projects that are aligned with the business’s growth.

Additionally, many consumers choose to side with local small businesses for a variety of reasons. Local businesses generate revenue, which makes them eligible to pay taxes to the government. The money is then used to improve different parts of the community, such as schools, homes, and security. A thriving small business can also enhance property values within the community while bettering the homeowner’s bottom-line, all the while generating more taxes for the local government.

Yet another great aspect of small businesses is their ability to focus on the smaller things. This means that they might be operating in a niche market or providing a unique, artisan product, which allows the culture of the society to shine through. Contrastingly, larger businesses are known to mass-produce their products to cater to their high level of demand. Because of this, they often do not have the individuality, quality, or distinctiveness commonly found with products created by small businesses.

Small businesses are important to the economy, and that is why companies like Credibly are working hard to support them. Founded by Ryan Rosett and Edan King in 2010, Credibly is a fintech SMB lender that provides fast, flexible financing to small and medium-sized businesses, across over 300 industries. By evaluating a business’s overall health far beyond traditional financial metrics, Credibly is able to improve the cost, speed, and choice of capital when providing financing solutions to this historically underserved segment. For more information, visit www.credibly.com.