Although statistics show that 99.7% of businesses in the US are considered “small” businesses, most businesses are actually very, very small. In fact, 90% of all businesses in the US employ fewer than five people, including the owner. Furthermore, 75% of small businesses are non-employers. So how do you, if you are one of these and employ only yourself or few others, contribute significantly to the employment picture?
1. As Business Goods And Services Consumers
As a small business person, you consume different goods and services than the ordinary consumer. For example, you might buy only one home computer, but for your business, if you have two or three employees, you might buy three or four computers. And the necessary hardware accessories for those computers. And the necessary additional software-business software–for those computers.
Since there are about 22 million micro-businesses out there, that’s a lot of computers, and software, and accessories. All of which adds up to a lot of money to create jobs in the businesses that make those computers and software and accessories to support your business.
2. As Outsourcers
Even if you are a non-employer, you actually create employment for the self-employed.
You can’t do everything yourself. You outsource. You hire a bookkeeper. You hire a webmaster. You design an application but hire a programmer to code it for you. Thus, you are creating work and profit for others.
3. As Partners, Mentors And Future Employers
You might be a non-employer now, but if you are successful, your business will grow and expand.
Growth and expansion mean that you will need more help. If you are still reluctant to become an employer, you may take on a partner. And while that partner may bring in more income, he or she will also become a consumer of business goods and services and perhaps, an outsourcer. That increases your business’ contribution to the overall economy, and creates employment elsewhere.
Furthermore, many entrepreneurs take on partners or trainees of some sort to mentor their own successors. An amazing number of entrepreneurs are “serial entrepreneurs.” You can keep a business as long as it suits you, and then you can sell out to your partner and go on to another project that suits you more.
With success, growth and expansion, you will eventually need to become an employer. So, you will directly create jobs.
Even though a huge percentage of micro-businesses fail, while they exist they create other jobs. Including the job of the owner. And now you understand that the ones that survive actually do create all sorts of jobs.