Whether you’re a solo entrepreneur or a family-run shop, you are part of an important community. Small businesses account for almost half of all jobs and 99.9% of all business in America, according to the Small Business Administration’s Office of Advocacy. They’re also responsible for two-thirds of all innovation and play a vital role in creating jobs, driving economic growth and addressing societal issues, like bridging the digital divide.
A small business is a privately owned company that generally has fewer employees and lower revenue than larger companies. They can take many legal forms, from a partnership or LLC to a corporation. The size of a small business is often defined by the type of industry and may be determined by the Small Business Administration’s (SBA) size standards, which vary by industry. Registering as a small business can provide access to funding, government programs and tax benefits.
While small businesses offer a wealth of potential opportunities, they can be financially risky and are often vulnerable to market pressures. To ensure your success, it’s critical to be prepared for the challenges you may face, from understanding the importance of diversification to leveraging digital marketing strategies to build and grow your customer base.
It’s also essential to know the different types of small businesses and how they differ from each other. This will help you choose the right structure for your business, as each has its own set of advantages and requirements.