The American small business landscape is steadily changing. While even positive changes can cause a temporary upset, the good news is that start-up and small business growth in the U.S. has been on the continued upswing since 2015. In fact, according a recent Kauffman Report, 2017 shows the most promise for entrepreneurial expansion in over a decade. However, this is not to say that all current circumstances have made for an easy road.
Nevertheless, here are some of the more promising factors currently affecting today’s small business community.
Some entrepreneurs have decided to forego the tediousness of hiring, payroll, and management hierarchies, instead opting for a one-person enterprise. A recent Census Bureau report has reported that payroll-free businesses currently comprise over 70 percent of the 27 million companies in the US, raking in earnings of approximately $887 billion. Outsourcing allows the one-person business to sustain its necessary areas of productivity, while more and more up-and-coming entrepreneurs are choosing to do business singularly from a low-cost home office, drastically decreasing overhead expenses.
Changing Face of Entrepreneurs
Increasing diversity in the U.S. has played a major role in the current small business climate. The “prototype” for the average American business owner has now expanded even further to the younger technology-friendly generation, with an increase in women and immigrant business owners, as well as baby boomers who have decided to start up new ventures in the face of retirement. The risk-friendly approach of the younger generation, the extensive skills and life experience of the baby boomers, and the expanded perspectives of all those with varied backgrounds and ethnicities, have contributed to the advancement and evolution of small businesses in America.
One only needs to search the internet to understand how quickly knowledge and information can become outdated or irrelevant. However, it is the unencumbered small business that often seamlessly adapts to new innovations and quickly abandons outdated methods. The simplicity of the small business’ organizational structure allows for greater ease when learning and implementing new ideas and formulas. This ability puts small businesses in the forefront of changing times.
Freedom of Location
Technology has allowed small businesses to migrate from typically expensive big-city locations to more affordable and moderately sized cities throughout America. Through online social media and video marketing, small business owners have been able to create significant traffic to their companies while avoiding the exorbitant costs of metropolitan hot-spots. The ability to connect with a vast and varied clientele from one cost-effective central location allows small businesses to compete with larger corporations never before possible.
It’s safe to surmise that current developments in the small business climate are not fading away any time soon. Aspiring entrepreneurs may want to consider these factors while contemplating the start of their own new venture.
Stewart, Cooper & Coon, has helped thousands of decision makers and senior executives move up in their careers and achieve significantly improved financial packages within short time frames. Contact Fred Coon – 866-883-4200, Ext. 200