Business owners are a reflection of the depth and diversity in the U.S. economic system. They are a group that is at the heart of both the political and social debates. The profile of America’s entrepreneurs is changing more rapidly than ever, just like the businesses they founded and the customers they serve. This means that they cannot continue to work under the assumptions that worked 10 years ago. They need to make bold decisions and cut through the noise to turn their vision into reality.
Here is a look at the modern American business owner as another year approaches:
The history of America’s entrepreneurs
The U.S. Small Business Administration and other public agencies consider any firm with less than 500 employees to be a small business. The U.S. Small Business Administration, as well as other public agencies, considers any company with fewer than 500 employees a small one. This means that more than 99 percent all U.S. businesses with paid employees qualify as small businesses.
The statistics on the business ownership in America can also tell us a lot. According to the latest Census Bureau Survey of Businessowners:
* At least 45 percent of businesses are owned by women.
Minority-owned businesses now account for 29 percent of all U.S. companies (a 38 percent rise from just five years ago).
More than 9 percent (or 9,000) of U.S. businesses are owned by veteran business owners.
* One-seventh (14.4%) of U.S. entrepreneurs are immigrants.
* One in five U.S. companies is family-owned. Around 10 percent of these businesses are owned equally by men and woman.
Financial challenges: How to overcome them
As our economy grows, so do the challenges that American entrepreneurs face in starting and managing their businesses. Statistics on business finance show some of these patterns.
* Although personal or family funds make up the majority of funding for small businesses, the SBA discovered that women were half as likely to receive a loan from a traditional bank as men.
* Women are less likely to look for outside funding than men, which puts more strain on their finances.
Minority-owned businesses rely more on credit cards than the average for financing their business.
These facts make it clear that capital financing is a priority for business owners. Cash flow imbalances can cause lasting financial damage. It only takes one major tax bill, equipment failure or missed sales opportunity. Small businesses have to overcome additional obstacles in order to obtain the financing that they require to avoid such problems and take advantage of growth opportunities.
Access to capital has evolved in tandem with the changing concerns of American entrepreneurs. QuickBridge offers flexible options to small businesses that are looking for financial solutions and not just more frustration. Contact us to find out more about the financing options available for your company today.
