The rallying cry to support small businesses as the growth engine of our economy is universal, although few people in a position to make a difference are actually doing anything about it. But small business as a category has a very broad definition. While most people think of their local coffee shop, boutique or other small service provider, a small business as defined by the US government, can have up to 500 employees. I guess it depends on what your definition of small is, but most people would view a 500 person business as pretty, you know, big.
What about really small micro-businesses with 1-4 employees? Not only are these truly “small” businesses, but they’re a significant force in driving U.S. economic growth and we as a country should do more to help them. In fact, micro-businesses created a net 5.5 million jobs from 2004 – 2010 compared with a decline of 1.8 million jobs for large businesses (more than 500 employees) over the same time period (California Association for Micro Enterprise Opportunity). Those are some impressive numbers and that’s excluding the rest of the official small businesses with 5 – 500 employees.
Let’s urge our policy makers to Go Micro. It’s not enough to give lip service in support of small business overall, we need to create structures in our government policies and financial institutions that really support micro-businesses. At Hiscox we’re dedicated to giving affordable and easily accessible small business insurance protection to this sector that’s a big factor in driving our country’s current economic growth. What can we do to get our leaders, at the state, local and national levels, to Go Micro and support America’s really small businesses? Leave a comment and share your thoughts with us.