Hug an Entrepreneur Day?
First, start a timer. Go ahead, we’ll wait.
Okay, ready? According to the US Census, there are 5.8 million employer firms and 21 MILLION “non-employer firms” in the country. (See infographic below.)
That’s right: There are 21 MILLION very small businesses in the U.S.
But here’s one better. According to the Kauffman foundation, somewhere around 565,000 companies are created each month in the U.S. Or 19,000 each day.
Now go check your timer.
If you read slow and a minute went by, it means that
13 startups were created SINCE YOU STARTED READING THIS POST.
Here’s another interesting statistic: startups (companies under one year old with more than one employee) created 2.5 million jobs in 2010. This doesn’t count the astronomical number of single-person companies (which technically don’t have any employees, just owners) but are paying for (at least part of) the income of their owner. It’s no exaggeration to say that small companies are doing more than their fair share of providing incomes for Americans.
Okay and here’s the most interesting statistic: a study last year concluded that despite the long-held conventional wisdom that small businesses create jobs, it’s not true:
“[O]nce we control for firm age there is no systematic relationship between firm size and growth. Our findings highlight the important role of business startups and young businesses in U.S. job creation. Business startups contribute substantially to both gross and net job creation.”
In other words, it’s not small businesses that create jobs – it’s NEW businesses.
Be proud of yourselves, entrepreneurs. Starting your own business could be the most American thing you could do: it’s synonymous with freedom, self-reliance, and the can-do spirit – fundamental aspects of the American character. You’re also, arguably, the single most likely candidate for saving the U.S. economy in the years to come. So thank you. Here’s a hug.
Now get back to work.