Small business advocates and government leaders have long argued that small businesses are key to economic recovery. It’s a dramatic change in lip service, if not necessarily in actual policy, from past emphasis on larger businesses and the “too big to fail” rhetoric used to justify bailouts following the economic downturn in 2008. But it turns out a more specific kind of business tends to be most important for job creation. In this roundup we look at the kinds of businesses that really make a difference and how your company can be numbered among them.
The Best Kind of Business
Room for growth. Both leading economists and a recent study based on data from the U.S. Census Bureau suggest the most important businesses to the economy aren’t necessarily small, despite popular opinion. But before you take the headline in Adam Ozimek’s piece “There Is Nothing Magical About Small Businesses” the wrong way, read on. You may be surprised about the kind of company that fits the bill. Forbes
The young and the restless. Turns out it may not be the size of the business but its age and scalability that makes the most difference. Simply put, younger businesses create a disproportionate number of jobs in the economy. As the authors of a recent study explain “Firm startups account for only 3 percent of employment but almost 20 percent of gross job creation. The fastest growing continuing firms are young firms under the age of five.” The National Bureau of Economic Research
Words of wisdom. In a recent survey of leading economists, the majority strongly disagree that focusing on small businesses to the exclusion of everything else is most important for the economy. The question centers not so much on whether small businesses are important for the economy, but rather on if public policy should focus on small businesses specifically. Small business owners are used to doing it on their own, though. Chicago Booth
Time to Grow Up
Outside the comfort zone. If you want to grow your business and become one of those companies critical to the economy, you need to start by getting outside your comfort zone. Bernd Geropp gives us a pep talk about moving beyond the place where you feel comfortable in your business and trying instead to do things you are afraid of doing. These are the things that will make your business better, but you will only realize this by abandoning the illusion of security and striking out in a new direction. More Leadership, Less Management
Very influential. You’ve heard how Facebook can help you grow your business and your brand. Ultimately, this comes down to expanding your influence, says brand evangelist Cindy Ratzlaff. One great technique for doing this involves using Facebook interest lists to increase your page and social influence. Ratzlaff shows you how to build your influence strategically while getting the results you want. Brand New, Brand You
It’s all about you. When you build your personal brand, you build your business too. Holly Hanna lists eight things even the smallest business owner can do to grow a business. These are daily habits Hanna says will nurture your business on a regular basis. The tips are simple: things like connecting with one new person daily, embracing your weaknesses, reflecting upon your successes, and more. But Hanna insists they will bring big results for expanding your business. The Work at Home Woman
Better together. When resources are scarce, small businesses can continue to grow through strategic partnerships. There are at least three ways these partnerships can help, says Adam Gotlieb. They include reducing overhead costs, engaging in joint marketing efforts, and otherwise expanding your business. If you can think of any other ways partnering can help small businesses grow, please share them in the comment section below. The Frugal Entrepreneur
Yes! A mix for economic success: 1. More solid focus and support for very small and very youg businness- micros and startups 2. Entrepreneurial fearlessness 3. Networking – social and live 4. Personal and Professional development 5. Sharing!
Big companies are constantly shifting jobs around in the organization. New jobs may be created, but other jobs are eliminated. Small companies are legitimately growing because they have few areas to eliminate jobs. Long live SMBs!
Good info! If we want to dig out of this bad economy, it’s going to be on the back of small business.