January 13, 2008
US Entrepreneurship is the Third Largest Global Economy
US Entrepreneurship and small business represent the third largest global economy. Today, small businesses with 500 or fewer employees employ more than 50% of the all employees and produce approximately one-half of the total private non-farm GDP.
If we were to compare the size of the small business economy with the rest of the world, the US entrepreneurship and small business economy would rank third in the world behind the US medium and large business economy and Japan.
The size of the US small business economy would rank ahead of Germany, the United Kingdom, France, and Italy.
Entrepreneurship and small business represents the best of the driving forces that have sustained the US economy, jobs, and wealth preservation while other segments of the economy have struggled with outsourcing, commodity inflation, and international competition.
Filed under Entrepreneurship by Greg Watson
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This is especially true when the global economy turns south. We see a lot of business churning (the closing down of some businesses, the creation of new businesses) which is essentially a wash when we are talking about small business's proportion of the economy. However, there is no such thing as a 100,000 employee start-up. When a big corp goes under, at least some percentage of those former employees start or join new small businesses. As the growth phase begins, we can expect entrepreneurial ventures to play a larger role in the overall economy.