Amidst the (often chaotic) long Thanksgiving weekend fell Small Business Day on Saturday. Here’s an eye-opening look at the power of small businesses in the U.S. economy. It turns out that as small business owners, insurance brokers are vital to the health of our local and national economies.

The Power of Small Businesses

You have a lot of company.

Research shows that a new U.S. business crops up with each passing minute. The data is leading some analysts to predict that by the year 2020, more than 50 percent of all workers will be self-employed.

Small business creation has pulled our economy forward—especially in recent years. The Small Business Administration (SBA) reports that of the 10.9 million jobs created since the recent recession, a whopping seven million of them were in startups and small businesses. In fact, Automatic Data Process (the payroll services company) reports that just this past March, small businesses created more than 100,000 jobs.

In a Forbes article, the SBA reported last December, “For 15 straight quarters, small firms have contributed to employment growth—accounting for as much as 80 percent of job gains in any given quarter.” According to the U.S. Census Bureau, small businesses in the private sector employed a total of 56.1 million people in 2012, more than large corporations which employed 51.6 million people.

Perhaps most surprising? The smallest businesses (fewer than 100 employees) actually have the biggest share of that small business employment figure. 

The Role of Small Businesses

When we think about the key role of small businesses, we have to include a few important factors that go beyond national employment figures and touch local communities the most.

• Think innovation. Entrepreneurs who grab hold of a great new idea build startup business in their local areas all the time. Successful innovation entrepreneurs hire more people, a boon to their local economy.
  
  
• Think local corporate supplier. Larger corporations may need a local supplier who jumps in and starts a local small business to meet that larger company’s requirements.
  
  

• Think local product supplier. People in local communities may need access to a product or service offered through a large corporation.
  
  

• Think customer loyalty. The best small businesses actively engender customer loyalty within their local communities—a boost to any local economy. By supporting local businesses, customers are keeping money and tax revenues circulating inside their communities, which strengthens local economies. Better yet, that strength tends to carry forward through thick and thin economic times.

Insurance brokers are great examples of small businesses that meet local needs by being the liaison between large health insurers and a local community of small businesses and individuals who need health insurance. You play a key role in maintaining a thriving local community. That’s why Small Business Day was created—to celebrate the vital role you play in economic stability.

How You Can Celebrate

If there is a Small Business Day celebration in your area, join the fun. If there is no organized activity, consider creating one by hosting a celebration and asking other small business owners in your region to participate.

• The special event you create can include booths or special food and wine tastings which have great customer appeal.
  
  

• A local small business with the space needed might donate their venue and co-host the event with you.
  
  

• Use social media and your website to let customers and prospects know about Small Business day—including the reasons to support their communities by shopping locally—and to tout your special event.

Most of all, take pride in the role you play in being part of the economic strength of your local community and our nation.