Whether they’re starting as a home-based entrepreneur or launching a multimillion-dollar business, small businesses drive economic growth and create jobs. Their impact is felt in local communities as well as nationally. While many of the challenges they face are unique to them, they do share a few key traits that contribute to their success.
There are more than 34.7 million small businesses in the United States. They range from sole proprietorships and family-run shops to growing companies with hundreds of employees. While the exact definition varies by industry, most small businesses have fewer than 500 employees and less than $5 million in annual revenue. This size standard allows them to self-certify for government contracts and qualify for financial programs aimed at their needs.
The most common structure for a small business is a sole proprietorship, which makes the owner the only legal entity responsible for its debts and profits. Franchises, which are partially or fully owned by the company that operates them, are more common in some industries than others.
Whether they’re a mom and pop shop or a Fortune 500 company, the one thing most successful small businesses have in common is that they focus on building relationships with their customers and creating value for them. This can be achieved through digital marketing and other tools that allow for cost-effective, targeted outreach to a specific audience. These include social media and local search marketing. In addition, many of these small businesses use market research techniques to analyze the competition and understand what their customers need.
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