What Is a Small Business?
Ever asked yourself, “What is a small business?” Recently, we came across a Forbes article with 16 interesting statistics about small businesses. Now, we’ve known for a long time that the government’s definition of small business doesn’t exactly align with our own. The first stat in the Forbes article?
“The SBA defines a small business as an enterprise having fewer than 500 employees.”
500 employees!? Do you know anyone who owns a company with 500 or more employees? There aren’t very many.
500 employees is a lot of people. In our humble opinion, that is not small.
So, this got us thinking about what the distribution of firm size looks like amongst the 27+ million “small” businesses. We found the census web page with exactly that information. Here’s the bottom line:
- 21.3 million of the 27 million are single-person companies
- 3.6 million have 1-4 employees
- 1 million have 5-9 employees
- 0.63 million have 10-19 employees
That leaves just 0.63 million companies with 20 or more employees. In other words, 97.67% of all companies in the USA have 20 or fewer employees, with the vast majority having only 1 person.
But…why does this matter? Or…why does it matter to us?
Because that’s who we work with!
At HubRunner, we are small business people. And not “small” business as the SBA describes it. We mean small business as WE define it – on our terms and your terms – and nobody else’s. We have started and run small businesses. Now we work exclusively with small businesses. It’s our lifeblood. We understand the challenges, the needs, the issues, and what it takes to be competitive in the small business market.
Unlike our competitors, we aren’t a large corporation chasing big investor dollars or higher stock prices on the public markets. We’re real people, helping small businesses stay competitive. We love the underdogs. The underappreciated. The sole proprietors and the small teams who gather each week to do good work, honest work. And, we love what we do.