It’s National Small Business Week! We’ve put together some helpful information and exciting statistics about the small business community within our state and ways you can engage and support these businesses.
Did you know that 99.4% of all businesses in the state of Alabama are considered a small business by the US Small Business Administration (SBA)? According to the SBA, a business with fewer than 500 employees qualifies as a small business. There are over 400,000 small businesses in Alabama, employing almost 50% of Alabama’s workforce. At the Business Council of Alabama, 95% of our member businesses fall into this category, with over half of those having just 25 or fewer employees. BCA supports our state’s small businesses through our Small Business Policy Committee, which helps shape our legislative agenda each year, and the presentation of the Annual Small Business Awards, celebrating the best and brightest among our state’s small business.
As we celebrate National Small Business Week, it’s important to highlight the diversity within Alabama’s small business ownership. More than 40% of all small businesses within our state are owned by women, and one in five are a minority owned business. The Alabama Department of Economic and Community Affairs (ADECA) Office of Minority Business Enterprise administers a certification program to identify small, minority-owned, and women-owned businesses capable of providing goods and services to both government and private sectors, giving these businesses a distinguished stamp of approval. For more information on minority-owned small businesses in our state and on how to certify your business as minority-owned, visit the ADECA website.
At the national level, small businesses account for 97.4% of all exporters and 43.5% of the nation’s gross domestic product, providing outstanding contributions to our national economy. Locally, however, small businesses have an even greater impact – shaping and supporting the communities in which they serve. Money spent in locally owned small businesses re-circulates in the community, creating two to three times the economic impact compared to nationally owned stores. For every $100 spent at a locally owned small business, $45 goes back into the community compared to the $14 return on the same amount spent at a larger retailer. Additionally, studies show that non-profit organizations receive an average of 250% more support from small businesses than large businesses, with three out of four small businesses donating an average of 6% of their profits to charitable organizations annually. We all know that locally owned small businesses help build the community, but these numbers prove they really do make a difference.
Have you thought of starting a small business in your community? There are many great resources available to help you on your journey. As you begin the planning process, the U.S. Small Business Administration Business Guide, found here, provides a step-by-step manual to walk you through each phase of starting your small business.
From the initial plan to growing your already thriving business, the SBA has resources available. Once you are ready to set your plan in action, the Alabama Secretary of State website provides a one-stop-shop for the information and forms necessary to become a registered small business within the state. These are just two of the many resources available. Of course, once you begin your business, become a member of Alabama’s premier voice for Alabama business.
Small Business Week may only be once a year, but we can support our local small businesses year-round by utilizing just a few tactics that show how much we appreciate these businesses.
These small but impactful tips are not only easy to accomplish, but they provide our small businesses and communities with the support they deserve. Happy Small Business Week!
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