May 5th is the day many Americans celebrate Cinco de Mayo, but it also marks the start of National Small Business Week. Entrepreneurs are a vital part of our economy - more than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year.
Being a small business owner is not an easy task – one in 12 businesses close every year. Their top challenge is a lack of capital, followed by marketing, time management, recruiting and retention of employees, administrative work, and providing benefits.
Most small business owners (86.3%) make less than $100,000 despite this, more than 70% of small businesses say they are happy.
While women working in the corporate world feel the pinch of the wage gap and the glass ceiling, women business owners are doing well. Women now own 4 out of every 10 businesses in the U.S., and they generate $1.8 trillion in revenue. Almost half (47%) of those businesses are owned by women of color.
Are some cities in America better for small business owners than others? Yes, says a report by GoBankingRates. Here are their top three picks:
1. Austin Texas
Austin was named the #1 place in America to start a business by CNBC, the top city for “small-business vitality” by American City Business Journals, and the top city for launching a technology startup by Sungard Availability Services. It’s known for its tech startup scene and the supportive business community.
2. Miami Florida
Miami is the city with most people working for themselves. More than 82,000 small businesses employ 53.3% of Miami-Dade County’s workforce, according to a study commissioned by the Florida SBDC at FIU.
3. Dallas Texas
Dallas is a blend of all the major pillars needed for a thriving business. Talent is right up at the top of the list, and Dallas is the fourth largest metro in the U.S., adding 150,000 people a year, so there's no shortage of people to recruit and hire. No state income tax means any employee relocating to Texas could get a raise of up to 13.3 percent.
If you are a small business owner looking for information and advice, take advantage of events like the virtual conference hosted by the Small Business Administration and SCORE Association. It takes place Tuesday, May 7 – Wednesday, May 8, and registration is free to the public.
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