A small business is a company that typically has fewer than 500 employees, and generates lower revenue compared to larger businesses. It may be structured as a sole proprietorship, partnership, LLC, or corporation. It may also self-certify as a small business when registering as a government contractor in the System for Award Management (SAM).
There are about 6 million small businesses with paid employees in the United States, accounting for nearly half of private sector employment. They are more likely to be women-owned, minority-owned or located in rural areas than large businesses and are more innovative and flexible than their larger counterparts. Small businesses are also a powerful economic force, creating jobs at a faster rate than any other sector of the economy.
While they face many challenges, including limited access to capital and labor in tight markets, the vast majority of small business owners report a high level of satisfaction with their businesses. In fact, small businesses receive the most positive ratings in Pew Research Center surveys among all U.S. institutions, ahead of the military and churches.
Many small business owners are driven by a passion for their work. Others are motivated by the desire to create their own financial security and freedom. Regardless of motivation, successful small business owners tend to be determined and open-minded thinkers willing to dive headfirst into an uncertain path. They are tenacious in the face of obstacles and are always looking for opportunities to improve their operations.
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