I run a small business and I write about small business. I speak to small business owners. My clients are small business owners. So it’s probably no surprise that National Small Business Week is important for me. What’s so special about this annual celebration? To me, five words sum it all up.
Millions.
The
Small Business Administration defines a “small” business as a company having less than 500 employees and there are about 28 million small businesses in America today, according to the
U.S. Census Bureau. 22.5 million of these companies employ just one person. 98 percent have less than 20 employees. 52 percent are home based. 120 million people work for small businesses, which is about 50 percent of the working population. Small businesses have generated 65 percent of net new jobs since 1995 and since 1990, they’ve added 8 million new jobs to the economy (compared to a loss of 4 million from “big” businesses.) Our demographics are even more interesting: 63.5 percent of us do not have a college degree and our average age is 51.7 years old (although more and more Millennials – those between ages 18 to 34 – are getting into the game). National Small Business Week represents a huge group of citizens, voters and employers in this country.
Courage.
It takes a lot of courage to start a business. Take Andrea Sreshta and Anna Stork, the co-founders of
LuminAID. They were graduate students at Columbia University when the 2010 earthquake in Haiti occurred. Their class was told to design a product for disaster relief. Anna and Andrea came up with a
rechargeable solar light which lead to other lighting products that could be shipped and distributed globally. This ultimately led to a line of flat, rechargeable solar lights. Andrea and Anna had the courage to take this idea, while still young grad students, and start a business and since then have grown it significantly. It’s the courage of today’s business owners to take these kinds of risks that make me think of them during this special week.
Passion.
The most successful business owners I know really care about what they do. Jeff Malkoon, the “Head Nut” and founder of
Peanut Butter Americano has this kind of passion. His mission is to create “the most delicious, nutritious and socially beneficial nut butters on the planet.” Jeff’s
B-Corporation (that’s a for-profit company that meets a high level of social, environment, accountability and transparency) makes specialty nut butters not found anywhere else. He’s passionate about running a
company that gives back to the world. For example, he shares the profits from the sales of some of his products to help give economic assistance to people in 19 countries across North and South America, to help build housing, and to fund language and training programs. He also started another fund that helps diversify his giving to include domestic organizations, food banks, local pantries, and more. National Small Business Week honors those entrepreneurs with passion.
Opportunity.
I love entrepreneurs who recognize an opportunity – and then capitalize. Paul Goodman, the CFO and co-founder of
Pure Vida Bracelets saw opportunity in jewelry. He
started his company with a business back in 2010 after a trip to Costa Rica. While traveling through the country, they met artisans who made beautiful, colorful bracelets but were living in poverty. And that was the opportunity: great and talented artisans who needed a market for their products. So the partners said to each other: We can sell these! And to a much larger audience. And so they did. Five and a half years later, Goodman’s company supports about a hundred artisans in Costa Rica. Now grossing 15 million a year the company sells its products in 2,500 different retail stores, distributes them in several countries, and processes a thousand orders a day on their website. This is the week to take our hats off to those who capitalize on opportunity.
Profit.
Profits are important. And this is also the week to remember profits. Every small business gives something back – great products and services, jobs for people, opportunities, charitable contributions and business for other businesses who do the same. And the best ones are managed profitably. They are run by smart, independent people who know how to buy something for a dollar and sell it for three. And they take their profits and invest, spend, consume and employ. Without the profits that our small businesses generate, our economy would be just a fraction of its current size.
This is your week, fellow small business owners. You know these five words. You live them.
Gene Marks is a small business owner, author and nationally-syndicated columnist.