How Does a Small Business Contribute to the Economy?
Small Businesses are credited as the engines of job creation. Creating jobs positively impacts families, the community and the overall economy.
Let us look at some research numbers to validate the tag of “engines of job creation”:
- As per a research by Entrepreneur magazine, small businesses in the United States account to more than 60% of all US jobs
- A study published by Google and KPMG, “India has 51 million small and medium businesses and they employ about 120 million people. SMBs account for 37 percent of India’s $2 trillion GDP
- SMEs in India contribute to approximately 45% of the total Indian manufacturing output
- SMEs in India contribute to 40% of the total exports
- As per figures cited by Securities Daily at the end of 2017, small, medium and micro enterprises account for over 90% of all market entities in China, over 80% of nationwide employment, more than 70% of patents, over 60% of GDP and more than 50% of tax revenues
These are some statistics from three of the largest economies in the World. Small Businesses are indeed the engines of job creation, positively impacting the local and national economies.