| Everyone agrees on a broad level that small | | | | rapidly making gains in the technology sector. 41% of |
| businesses are vital to the American economy. | | | | high tech workers like engineers, scientists and |
| However, most people would be surprised to know | | | | computer programmers are employed by small |
| just how important. The United States Small Business | | | | businesses. Employees at small businesses produce 13 |
| Administration keeps records and statistics on small | | | | to 14 times more patents than those employed by |
| business in the United States and some of their | | | | larger companies. |
| findings are surprising. | | | | The Small Business Administration also offers some |
| First, the typical perception of a small business as a | | | | interesting observations on small business survival. |
| mom and pop operation with just a few, if any, | | | | Two-thirds of small businesses survive for at least |
| employees is not the entire picture. The Small Business | | | | two years declining to 44% after four years. Most of |
| Administration defines a small business as an | | | | the factors that support a small business surviving are |
| independently business with less than 500 employees. | | | | well known, such as access to capital and owner's |
| There are an estimated 23 million businesses in the | | | | education level. However, a lesser known factor in |
| United States that meet that classification. In some | | | | small business survival is that the business is large |
| smaller towns in the United States, these businesses | | | | enough to have employees. |
| represent a major source of employment. | | | | Similarly, barriers to starting a small business include |
| In fact, small businesses as defined by the Small | | | | lack of access to start-up capital and lack of |
| Business Administration represent 99.7 percent of all | | | | education. However, the number one barrier to small |
| the employers in the country and employ half of all | | | | business start up and a primary concern of existing |
| private sector employees. More than 45% of the | | | | small business owners is access to private health |
| private sector payroll is generated by small business. | | | | insurance. Individual health insurance for sole proprietors |
| Over the last decade small businesses have | | | | is much more expensive than receiving coverage |
| accounted for 60 to 80% of all new jobs created on | | | | through an employer. If a small business owner is able |
| an annual basis. | | | | to offer health insurance to its employees, the |
| Although a large percentage of small businesses are in | | | | administrative and premium costs are often much |
| the retail and service sectors, small businesses are | | | | higher than those for larger businesses. |