Small Business Survival Index Released
Small businesses and the spirit of entrepreneurship are important for our economy. Any policies that affect the health and growth of businesses should be examined more closely for obstacles to this sector’s vitality. According to the Small Business Survival Index, some of the contributions of small businesses that make them the backbone of our economy are listed below:
- 99.9 percent of all U.S. businesses have fewer than 500 employees, while nearly 17,000 businesses employ greater than 500.
- Small companies can account for more than 50 percent of nonfarm private GDP.
- Small firms created 1,990,326 net new jobs, while larger firms employing over 500 lost 994,667 net jobs.
- Small businesses also produce 13 to 14 times more patents per employee than larger firms and the patents are more likely to be in the top one percent of the most cited patents.
The Index saw three new measurements added in 2006, according to the SBEC. Two government-spending indicators and another that examines how each state protects private property were added, according to Tribune Chronicle. The SBEC’s home state of Ohio came in at number 37 in the state ranking by tax burden, while the top ten were geographically diversified:
- South Dakota
Their mission statement found on the SBEC Project Vote Smart web site reads, “The Small Business & Entrepreneurship Council works to influence legislation and policies that help to create a favorable and productive environment for businesses and entrepreneurship. By educating policymakers, legislators, the media and the public about the critical role that small businesses play in our economy—and how government actions can positively or negatively affect the small business community—SBSC strives to establish a solid public policy foundation upon which entrepreneurial activity and small businesses can survive and flourish.”