On inauguration day, a client called me. Her business is less than two years old and is a highly local, consumer services company. She let me know she reviewed her books from 2012 and her company paid just over $100,000 in payroll. She was about to continue with other financial information, but I stopped her.
“Wow!” I said. “See how you have contributed to the US economy? You should be very proud!”
She was startled. “Really?”
Per a study by the Kauffman Foundation, new businesses are responsible for job growth in America. Between 1977 and 2005, new firms created roughly 3 million jobs a year, while “existing firms lose more jobs than they create.” A payroll of $100,000 is something to be very proud of. That’s $100,000 more income generated in 2012.
Analysts talk about the ‘greatest entrepreneurs’ as those who created Facebook, Google, Apple, and Amazon. In fact, those powerful and wealthy companies combined employ fewer than 200,000 Americans. The greatest entrepreneurs in America, I would argue, are those with new, small, growing companies, whether local or international, where people seek and gain employment, and payroll is increasing.
So, here’s to you, entrepreneurs! Main Street will strengthen our country and keep our economy strong for many inaugurations to come!
All the best!