What is “SMB” and why should I be interested in it?

The term “SMB” stands for “small and mid-sized businesses.” It’s a vital part of any economy and makes up the largest volume of businesses in any country.

The business world is a broad spectrum – ranging from 1-person start-ups to giant corporations, in both for-profit and not-for-profit forms. In general there are 4 main phases or categories of business growth:

  • Small businesses, typically less than 500 employees
  • Mid-sized businesses, typically 501 – 2500 employees, often regional in coverage
  • Large businesses (usually corporations), 2500- 10,000 employees, often national in coverage
  • Multi-national corporations, over 10,000 employees with presence in multiple countries

When we think of businesses, we often think of the large corporations that seem to dominate the business landscape. However, it’s the SMB sector that accounts for over 99.8% of all business entities. In fact, all of the large corporations we might admire (or abhor) started as small businesses and were able to successfully navigate their way to becoming giant multi-national firms. So the SMB landscape of today is the source of the giant companies of tomorrow.

I view the SMB sector as the “heart” of an economy – if those businesses aren’t doing well, the overall economy won’t do well. It’s impossible for an economy to prosper and thrive if the SMB sector isn’t healthy. The impact that this sector has on the economy is undeniable:

“Small businesses have led our comeback from the downturn. 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.” (SBA website, 12/9/14)

Here are some surprising facts about small businesses in the US:

  • There are over 28 million small businesses
  • Over 50% of the working population is employed by a small business
  • Over 65% of the net new jobs since 1995 have come from small business
  • Over 543,000 new businesses start each month
  • But only half of those small businesses last 5 years or longer

Clearly, there are a lot of small and mid-sized businesses all around us! And they need good coaches to ensure that they are successful, reach their goals and continue to grow.

Wouldn’t you like to be one of those coaches and have a direct impact on a business AND on the economy of your country?

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