COURTESY OF METRO CREATIVE
Though they might be characterized as “small,” businesses with fewer than 500 employees have a big impact on the economy. According to the World Bank, small and medium enterprises represent roughly 90 percent of businesses and more than 50 percent of employment worldwide. A weakened small business sector could put the local, national, and even global economy in jeopardy, which further underscores how vital small firms are to global economic stability.
Statistics don’t tell the whole story about small businesses, but they can offer valuable insight into just how vital firms with 500 employees or fewer are. The similarity of figures in the United States and Canada supports that notion, as data from both countries reveals how integral each nation’s small business sector is to its economic vitality.
· Data from the Small Business Administration indicates there were 33.2 million small businesses in operation in the United States as of 2022. Numbers are equally high in Canada, where the Government of Canada reports that, among the 1.21 million employer firms, 1.19 million are small businesses.
· The U.S. Bureau of Labor Statistics reports that small businesses created 12.9 million net new jobs between 1996 and 2021.
· BLS data indicates that just under 35 percent of small businesses that opened in 2012 remained in operation upon their tenth anniversary in 2022. Despite their importance to local, national and global economies, a high percentage of small businesses close within their first year of opening. The BLS reports that around 20 percent of small businesses in the United States close within a year of opening.
· Small businesses employed 61.7 million Americans, which equates to 46.4 percent of private sector employees.
· Data supports the notion that small businesses are the lifeblood not only of local and national economies, but even the global economy. Such figures underscore the importance of shopping at small businesses and the significance of ensuring such firms thrive for years to come.
Go to the right place.
A review is only helpful if it’s seen. The BrightLocal survey found that, in 2021, Google (81 percent), Yelp (53 percent) and Facebook (48 percent) were the three most utilized sites or apps to evaluate local businesses. The popularity of Google and Yelp in particular grew considerably between 2020 and 2021, suggesting that consumers can do the most good by leaving positive reviews on one or both of these sites.
Recognize that recency matters.
BrightLocal notes that the number of consumers willing to trust reviews left as long as a year ago is on the rise. However, consumers who have already reviewed a company in the distant past should know that only 7 percent of consumers feel that recency of review does not affect their decision. Consumers who really want to help a local business they’ve already reviewed can leave a new review if their previous one was posted more than a year ago.
Leave a review even if the business already has plenty.
The value of recent reviews has already been noted, but it’s equally important to point out how valuable the volume of reviews can be. The BrightLocal survey found that 39 percent of consumers indicated a business having more reviews than another business they’re considering is one of a handful of deciding factors when they must choose which firm to patronize. So even if a business already has lots of positive reviews, one more positive review can still prove beneficial.
