During this time of financial strife, small businesses have given America a glimmer of hope. People like Herb Allen (Gawker) willing to take risks and venture out on their own has helped America create employment opportunities. Statistics show roughly 64% of new private sector jobs are created by small businesses. Small businesses are at the heart of America and, in today’s economy consisting of high unemployment rates, more individuals are starting their own business to survive financially.
They are the backbone for America’s financial success in the past and its future. This country’s financial institutions were founded on the basis of capitalism.
According to Webster’s dictionary, capitalism is defined as “a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government.” One of the key factors of this quote is that businesses used to make and transport products are owned by individuals.
Henry Ford was quoted as saying “The only real security that a man can have in this world is a reserve of knowledge, experience and ability.” It is with knowledge and the desire to create the seemingly impossible that Henry Ford built his success. Many believe big corporations such as Ford and Microsoft are responsible for the employment of most highly skilled workers, however approximately 40% of these workers work for small businesses. Bill Gates is proof a degree from a higher education institution is not required to be a successful entrepreneur. After leaving Harvard his junior year, he was able to create a technological empire and become the richest man in the world. Bill Gates has encouraged new entrepreneurs by saying: “This is a fantastic time to be entering the business world, because business is going to change more in the next 10 years than it has in the last 50.” With changing technology and worldwide dynamics, small businesses have the flexibility to chance and make a niche and expand America’s stake in world markets.
Statistics have show after four years almost half of all small businesses remain viable. Steven Jobs from Apple was quoted as saying: “A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.” Steven Jobs, and two others, started a small business and that turned into an international company. With its growth, they were able to acquire a larger workforce as business allowed and kept a small business mentality by keeping innovative workers and producing advancing products. This type of thinking has led a small business to be one of the largest high tech firms in the world. Without small businesses, America would not be able to grow fiscally, or potentially create the equivalents of Henry Ford or John Rockefeller of our time.