Power-Opinions.com » Economy

Role of Small Businesses in USA Economy

power-opinions — Thu, 24 Jun 2010 10:36:58 +0000

The Small Business Administration (SBA) office of advocacy defines a small business as an independent business with less than 500 employees. In 2008, there were 29.6 million businesses in the United States, according to Office of Advocacy estimates. Census data show that there were 6.0 million firms with employees in 2006 and 21.7 million without employees in 2007. Small firms with fewer than 500 employees represent 99.9 percent of the 29.6 million businesses (including both employers and non-employers) and there were about 18,000 large businesses in 2006.

Small business role in US Economy

They represent 99.7 percent of all employer firms
The small business employ half of all in private sector employees
These businesses pay 44 percent of total U.S. private payroll
They have generated 64 percent of net new jobs over the past 15 years
Small business hire 40 percent of high tech workers such as scientists, computer programmers and engineers.
Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited.

Source: U.S. Small Business Administration (SBA)

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Recession: The prediction no one cared of

power-opinions — Thu, 02 Apr 2009 12:09:44 +0000

Remember the Superman movie. Well, there was a flashback of Superman in his own planet Krypton. His father was a VIP in the planet. But when he predicts of the planet getting destroyed nobody believes it. And when the planet finally starts getting destroyed, nobody has time to do anything and they simply succumb to it.

There are many such things in the history of mankind where very learned people predict about some coming harm and people simply laugh at them.

The recent Recession was very big to handle for America and also for many nations of the world. It shook the entire economy to a tremendous level and people couldn’t do anything.

Well, the recession was also predicted by some economics professor named Nouriel Roubini. And when he said that people laughed at him; because things were going on very fine that time. It was like golden era for the economy, where people couldn’t even think of anything bad. But recession hit the nation finally.

He now says that the economy will face still worse times. This time people didn’t laugh.

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Recession Results Mass Layoffs

power-opinions — Sun, 14 Dec 2008 12:06:36 +0000

Layoff mania is not over yet. In fact it hasn’t started yet to a full extent. Many companies, especially big ones are wildly depending on layoffs to defend themselves from the economic crisis and recession.

The interesting fact here is that layoffs of a group with at least 50 people have not been seen to this extent since the September 11 attacks.

As we have already seen declination in main industries like manufacturing, automobile, etc., we can expect much layoff from these sectors.

Especially Mass layoff events have never been to this extent since 2001.

What can poor companies do? They have no much business now and the situation is so horrible that some great firms are still trying hard to deprive themselves from going bankrupt. Now who wants to have additional issues of payments in these critical times?

US census bureau has released some data on mass layoff events. There was nothing much positive in it.

Circuit city: The disastrous end

power-opinions — Tue, 02 Dec 2008 09:37:57 +0000

After Lehman Brothers, there were many companies that filed bankrupt along with the falling economy.

There are companies which are not as popular and there are some which have rocked in their industry and the world during good times. One of those great companies was Circuit City.

Circuit City, a legend in retailing sector of Computers and software, has filed its bankrupt this November. I would have been surprised if it had happened before bankrupt of the mighty Lehman Brothers. But if you see, though the Circuit City is not comparable with Lehman Brother’s size, it was a gem of the industry; with over 850 retail and dealer outlets in Canada and over 670 Super stores spread all around USA.

But its good days were over. But it fought bravely until its share price in Stock Market fell below $1 mark. What were shares of Circuit City? They were even worse than outdated newspaper.