Aguas Locas founders Morris Ellis and Pablo Murillo
Small businesses are the drivers of the global economy. There are over 33 million small businesses in the U.S. alone, accounting for over 99% of all firms1. Between 1995 and 2021, small businesses accounted for 62.7% of net new jobs and in the past year, they accounted for 43.5% of the entire GDP for the U.S.2
This shows how small businesses are the foundation of our global economy and the backbone of our local communities. They create jobs, build communities, enable opportunity and drive innovation, competition, and diversity. When these businesses succeed, so do local communities and economies around them.
Allegra Moet Brantly, Founder and CEO of Factora teaches women
how to build personalized wealth plans
This May, we are celebrating our annual PayPal Small Business Month, a time during the year that we recognize and celebrate the tremendous contributions of small businesses to the global economy. As a partner to more than 35 million businesses, the vast majority of which are small businesses, PayPal is committed to supporting entrepreneurs navigate each stage of their journey.
Over the past few years, small business owners have been faced with tremendous challenges. The combination of a global pandemic and the subsequent economic fallout as well as rising inflation over the past year, entrepreneurs have been weathering a potent economic storm. The National Federation of Independent Business (NFIB) Small Business Optimism Index declined for the 12th consecutive month in December of 2022. Business owners surveyed in the Index cited inflation as their number one challenge2.
Bacary Diatta, founder and CEO of Kassumay
Despite these challenges, small businesses are being created at record rates. According to the Economic Innovation Group, there were 5 million new business applications filed in 2022 – 1.7 million of which were for firms likely to hire employees – up 28% from before the pandemic3.
With all that small businesses contribute to our communities and economies – it’s important that we in turn support them by helping them launch, grow and keep them and their customers protected.
Throughout the month of May, we’ll be spotlighting some of the inspiring small businesses we work with, sharing expert advice on how small businesses can overcome the key obstacles they’re facing, and offering insights on how access to capital continues to be critical for underserved entrepreneurs. Make sure to follow us on Twitter and sign up for notifications as we highlight new stories, data and insights! You can also check out our Business Resource Center which has tips, tools and insights for SMBs.
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