Small businesses are the engines of the economy of every country. Be it Apple, Microsoft or even Forbes; every big company had once started with a small business administration. All it needs to grow is a passion, hard work, and dedication that would boost for a brighter future.

However, for various small business administrators, the process of lending is quite frustrating and complex. Of course, a bootstrapping beginning is one of the essential elements for small businesses

A small business is one that comes with a limited number of employees that is basically not more than 500. But there are still some more facts you need to be aware of regarding small business administration.  

  1. According to a survey, the U.S. alone has around 28 million small businesses. This calculation also comes with outnumbered corporations ranging from approximately 1162 to 1. 
  2. The number of small businesses operated and owned by an individual is around 70% globally. The small businesses are basically started by a single individual, and as it progresses, new members are added to the business, and it starts expanding. 
  3. Out of the total number of 30.2 small businesses in the U.S, 8 million of the businesses are owned and operated by the minority. The number increased to 38% in the years 2007 to 2011. Eight million businesses are a part of the 29% of the overall businesses, including various industries. 
  4. The student debt is among the various hurdles interfering with the progress of small businesses and even the owners of the small businesses. For example, in the year 2013, the loan debt of an average student increased to $29000 or even more, which was around $12000 in the year 1995. This financial burden surely has hindered the growth of the entrepreneurs. Again, for the self-employed who are already having a study debt on them, looking for the growth of the business has become more difficult. 
  5. When initiated with small business administration, around 4 out of 5 businesses achieve success in the first year itself. Some more reasons for its failure include fall in the construction industry, warehousing industry and the transportation industry as well. Apart from all these, health care, social assistance, etc. are also a part of the failure. 
  6. The prime reason for failure for small business administration is the lack of demand. Other reasons include lack of required cash flow, size of the market, barriers to entry, particular pricing in the market, direct competitors, and many more. Additionally, no matter how great your products and business are, the people wouldn’t be paying for it they aren’t interested, and this increases the chances of failure for any business. 
  7. The small businesses have successfully increased the percentage of new jobs in the market to nearly 66% every year. This increased job opportunities in various fields as well as provide a small impact on the economy too. 
  8. Out of the total number of small businesses, approximately 20% of them are owned by the family itself. 
  9. Surprisingly, out of the total number of small business administration companies, around 50% of the businesses are carried out from homes. 
  10. It’s not SBA that provides small businesses with direct loans. It’s the agencies that lend money to the small businesses, work on setting effective guidelines and also work on the guarantee too. 
  11. For the growth of small businesses, SBA loans prove to be gold standards. SBA provides loans with low rates, long terms and low payments in the market. 
  12. Through SBA, small businesses can enjoy far more benefits other than the loan. 
  13. The SBA doesn’t cost any amount to the taxpayers considering the small businesses. 

The informative facts we considered above are only a few of them. Small business administration comes with a broad meaning, and hence, there are various informative facts regarding it. Again, the numbers given in this fact list keep on changing every year. For example, the number of small businesses owned by minorities is increasing rapidly, and in the next few years, it is likely to reach a good number. This has also given a great impact on the count of small businesses which has also shifted the economy of the country. 

There are many such small and inspiring things regarding small businesses that are sure to help you learn about the industry and support other small businesses in your locality. 

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