Small business is a big deal
Dell. Microsoft. walmart. McDonald’s What comes to mind? Each of these companies started as small businesses that eventually grew into large companies, large successful companies. Collectively, they pump billions of dollars and millions of jobs into our global economy.
But who were these companies before they became household names? Who were these owners before they became billionaires? Michael Dell started Dell in his University of Texas dorm in 1984 with just $1,000; it is now the world’s largest PC maker, growing more than $40 billion in revenue in just sixteen years. Bill Gates dropped out of Harvard, founded Microsoft and built it into a $231 billion software giant. Sam Walton bought a small retail store right after graduating from college in Arkansas; Wal-Mart is now the world’s largest corporation by revenue. McDonalds took 13 years before the second restaurant opened in 1953 and now serves more than 47 million customers daily around the world.
The purpose of this article is to highlight the importance of small businesses to our economy. With economic development organizations and communities focusing on the ‘Big Fish,’ are we overlooking the enormous potential and opportunity of small businesses? This significant group represented 97.6% of all businesses in Indiana in 2006! These 128,100 employers accounted for 57% of all Indiana employment, nearly 1.3 million. In 2007, small businesses accounted for all net new jobs created in the US (Source: Bureau of Labor Statistics).
We cannot afford to overlook the contributions and value that small businesses inject into our economy. Our region has to continue offering opportunities, building programs that support and encourage innovation and risky ventures. As the economy continues to stagnate, this support is critical to the survival of small businesses, and thus the health of our regional economy.
There are a number of small business resources in the Region to help small businesses start, expand and succeed. For example, the NWI SBDC offers new and existing small business owners free consulting services, workshops, low-cost tools and resources, as well as resource partner referrals. There are also a number of local business incubators to assist in ‘hands-on’ development, as well as full-service office space, such as the Hammond Innovation Center, the Entech Innovation Center, the City of Michigan and the Purdue Technology Center. These resources mentioned, as well as others, are invaluable and can provide that entrepreneur with the additional assistance and direction to help them succeed and scale to new heights.
The statistics prove it: we need these entrepreneurs to start and grow small businesses. Fortunately, we are not short of people looking to fill that void, and the demand will continue to rise. In a survey funded by the Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven in 10 young people (ages 14-19) were interested in becoming entrepreneurs. The idea of being an entrepreneur now trumps the old adage of becoming a doctor or a lawyer.
With communities creating entrepreneur-friendly environments and resources, like SBDCs, incubators, and others, a Sam Walton or Michael Dell could emerge and become an electronic giant. If we truly want to develop the Region, provide future opportunities for our college graduates, and prevent ‘brain drain,’ let us work together and focus on our locally grown small businesses.
~ Never underestimate the power of small businesses!
