There are more than 33 million small businesses in the United States, which account for 43% of the country’s GDP and create more jobs than larger firms. They play a vital role in innovation, job creation, and economic resilience across the nation. But the road to small business success isn’t easy. That’s why we’ve put together this guide—from important definitions to expert growth tips and everything in between.
Generally, a small business is an independently owned company that offers specialized products or services to a niche market. These companies range in size, from a solo entrepreneur to a growing family-run shop to an enterprise with hundreds of employees. To qualify as a small business, companies must meet certain revenue and employee size standards—which vary by industry. Small businesses also must self-certify their eligibility for government contracts through the System for Award Management.
While running a small business can be an extremely rewarding experience, it’s not for everyone. In addition to putting your life savings on the line, you must be able to take well-informed risks to grow and expand. That means celebrating the successes and feeling the pain of failure. It also means knowing when to walk away, allowing you to move on to your next great idea.
Many small businesses seek financial support through business loans. Others use credit cards to finance their operations. However, both approaches can come with high interest rates, so it’s best to avoid debt if possible.