Small Businesses Generate New Jobs

Small businesses generate new jobs all around the world, including the United States. According to the statistics, US economy has an increasing rate of startup businesses after 2000.

Here are some statistical data and facts about small businesses in the United States.

Small Businesses … :

• Total approximately 23 million in the United States, with roughly 75 percent of the firms having no employees.
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44.3 percent of the total U.S. private payroll.
• Generate 60 to 80 percent of net new jobs annually.
• Create more than 50 percent of nonfarm, private grossdomestic product (GDP).
• Are employers of 39 percent of high tech workers (such as scientists, engineers, and computer workers).
• Made up 97 percent of all identified exporters and produced 29 percent of the known export value in FY 2001.

There is a strong correlation between national economic growth and the level of national entrepreneurial activity in prior years, according to the Global Entrepreneurship Monitor (GEM).

Colleges and universities with high levels of R&D expenditures lead to increased firm formations in the surrounding metropolitan areas. Such R&D expenditures contribute to economic growth via these new firms.

These are all exciting news, and statistical data. It means, entrepreneurs are doing their job, and creating more jobs to the U.S. economy every day.

We have to expand industry-university relationship for future success. Many universities, especially well known ones, are already cooperating with the industry, but smaller colleges should have more projects with local companies. Most important, industries should be encouraged more to participate in projects with universities.

I will always keep a close eye on growth of small businesses and its effects to the economy, and will update my readers frequently.