On March 1, 2018, Linda McMahon, head of the United States Small Business Administration (SBA) announced the annual National Small Business Week, scheduled for the week of April 29 through May 5. Small Business Week pays tribute to the engine that keeps the American economy moving forward.
Overview of Small Business Week
Since 1993, the President of the United States has promoted Small Business Week as an event that celebrates the crucial contributions made by American entrepreneurs and small business owners. During the entire week, the SBA recognizes small business operators from each of the 50 states and the United States territories. The SBA applauds the efforts of entrepreneurs that create jobs tailored made for the 21st-century economy in fields such as fiber optics, nanotechnology, and artificial intelligence.
Small business week salutes the risk takers that deliver innovative products and service and increase the competitiveness of American made goods in other countries. For 2018, McMahon and the SBA plan to start Small Business Week in Washington, D.C., before taking the celebration on the road to stops in Florida, South Carolina, and North Carolina. McMahon will meet with small business owners and conduct roundtable discussions about the issues facing entrepreneurs. In addition, the SBA plans to hold virtual events and educational seminars throughout the agency’s 10 regions and 68 districts.
The Importance of Small Business Week
According to the SBA, more than half of working age Americans own or work for a small business. Small businesses employing fewer than 50 people contribute nearly 70% to the United States gross domestic product (GDP). About 66% of working age Americans work for a small business. The events held throughout the week help entrepreneurs and small business owners network with professional peers, which creates an environment where newly generated ideas become tomorrow’s inspiration for running a small business.
Small Business Week Offers Helpful Tips
Roughly two-thirds of small businesses last two years, with one-third of small businesses surpassing a decade in operation. The high attrition rate is especially alarming for operating in the new global economic paradigm. The Bureau of Labor Statistics has monitored small business attrition rates across every major industry and the organization has found the attrition rates of each industry to be similar. However, startups in the finance, services, insurance, and real estate industries are more likely to last more than four years.
US Bank recently released a study showing an incredible 82% of all small businesses fail because of poor cash flow. One of the most important reasons for holding Small Business Week is to teach owners and operators how to manage invoicing systems and limit the amount of debt taken on to cover daily expenses. Entrepreneurs and small business owners learn how to prepare and analyze cash flow statements by using the latest accounting software.
Benefits Offered by Small Businesses
We salute small businesses for several reasons in addition to the strong contributions the businesses make to the American economy. Small businesses offer unique products and services that cater to consumers in niche markets. The one-of-a-kind products and services bolster the strength of local economies. Small businesses ensure the sale of products and services keep money flowing through other community businesses. By keeping money local, small business owners become pillars of the communities where they serve.
The outstanding personal service provided by small businesses allows customers to build lifelong connections. Most small business owners qualify as experts in their operating niches. As opposed to visiting a big box home improvement retailer, you gain access to professionals who offer expert advice. If a small business owner does not know the answer to your question, you can rest assured he or she will find someone who does know the answer.
Mark your calendar now to keep open the week of April 29 through May 5. Even if you cannot visit Washington, D.C. or one of the roundtable discussions hosted by the SBA, you can follow the events of the week online by accessing the SBA website.