For years I’ve said the growth engine of the economy is small business. But now several economists say that only holds true for startups — not established small businesses.
What remains indisputably true is that big businesses only increase hiring by .1 percent in a typical year. That’s not even statistically significant!
When it comes to startups, we’ve all heard about the usual suspects in the tech field that went on to become business behemoths. I’m talking about the Facebooks, Googles and Apples of the world. But do you know about things like Pinterest?
It’s the next hot social networking site that’s really taken off among women. My producer Joel’s wife posts recipes, design elements and more on there to share with her friends and family. The funny thing is the Pinterest founders don’t even have a business model yet, despite their early success.
I’m making my first foray into Pinterest at Pinterest.com/ClarkHoward. Be sure to follow me there.
One challenge for small businesses that never goes away has been funding. The lack of willing conventional lenders is now leading to the growth of peer-to-peer sites like LendingClub and Prosper.
Meanwhile, in the past I’ve talked about how many culinary entrepreneurs are using food trucks as a launching pad to build a clientele before opening up a traditional brick-and-mortar location. A recent story in The Longmont Times bears me out on that.
It all goes to prove that in spite of the messed-up economy and the constraints on lending, entrepreneurs are still creating opportunities that growth wealth. So don’t listen to those who say small business is not important. It remains the driving factor in America.