Small Business in America and the Great Resignation
National Small Business Week is celebrated during the first week of May every year. The aim of this week is to honor the entrepreneurs of our country, who have played their part in bringing new ideas to life and helping the US economy recover from the pandemic lockdowns.
While the pandemic created working conditions that led to what has been labeled the Great Resignation, small business is flourishing. If you wondered where all those workers went, statistics show they’re starting small businesses.
In 2021 just under 5 million new businesses launched a jump of 55 percent over the same period in 2019. Another driving factor is the rapid adoption of digital habits, which was facilitated by the pandemic. The desire to start a small business can be gauged by the increase in these online searches
- Google searches for “how to start a small business” jumped 124 percent in the first six months of the pandemic
- Searches for “easy business to start up” increased 84 percent
While Small Business Week salutes and celebrates these entrepreneurs, making a success of a venture takes much more than a bright idea and a willingness to work hard. Studies show that 20 percent of new businesses fail in the first year and the top reasons for that failure are:
- Financial difficulties
This covers not only insufficient funding to get the business off the ground but also the day-to-day operation. It means balancing income and expenses so that you remain solvent.
- Inadequate management
Very often an entrepreneur has the skills to deliver the product or service being sold. What they lack is management knowledge and experience. Learning how to manage the business and the employees is vital to the success of a small business
- Ineffective planning
You have probably heard the phrase: if you fail to plan, you plan to fail. Unfortunately, there is ample evidence to support this old saying. Following a sound business plan can make all the difference between success and failure so for a small business.
“Starting a small business can be a very fulfilling and financially rewarding venture,” says Gary Isler, Senior Vice President for David Lerner Associates. “However, it does take more than just a bright idea. Every entrepreneur setting out on this journey should get as much financial and management education as possible.”
Successful small business owners are making a significant difference to the American economy and the more they succeed, the more we all benefit.
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