In the economic landscape of 2023, a recurring question often echoes in the minds of many Americans: Is owning a small business still a worthy endeavor? Whether you’re an existing owner or someone considering embarking on this journey, the rewards and challenges of this path deserve careful examination. Here are 5 reasons for being a small business owner – even in 2023.
1. Becoming an Engine of Economic Growth
Small businesses have often been described as the lifeblood of the American economy, and this holds true even in 2023. Accounting for 44% of the nation’s economic activity (1), small businesses are indeed significant economic powerhouses. But beyond the numbers, small businesses act as the spark of innovation, fostering a competitive market and driving job creation. This role in economic dynamism lends itself to a sense of purpose that transcends the boundary of individual businesses, placing you, as a small business owner, in a position of impact and influence.
2. Seizing the Digital Frontier
Another reason for being a small business owner in 2023 lies in the digitization and their benefits. Contrary to fears that the rise of digital commerce would favor large corporations, the digital revolution has unlocked a new universe of possibilities for small businesses. The connectivity offered by the digital realm has shattered geographical barriers, opening the doors to a global customer base. A study by Deloitte has shown that digitally advanced small businesses generate twice as much revenue per employee and are almost three times as likely to create jobs compared to their less digital counterparts (2). As a small business owner in 2023, you’re not just adopting technology – you’re leveraging it to transform your business possibilities.
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3. Enjoying Enriched Support Systems and Favorable Policies
In the current economic climate, there is an enhanced focus on fostering the growth and stability of small businesses. Numerous organizations offer resources tailored to small businesses, including mentorship programs, funding opportunities, and digital tools. Furthermore, the Small Business Jobs Act has increased the limits for tax deductions (3), making it financially more viable to run a small business. The supportive ecosystem in place provides a robust safety net, making small business ownership less daunting and more attractive – thus providing another reason for being a small business owner.
4. Crafting Personal Freedom and Satisfaction
There’s a unique sense of satisfaction that comes from being your own boss – a feeling of control and fulfillment that is difficult to derive from a regular job. As a small business owner, you have the freedom to shape your work environment, make critical decisions, and follow your passion. In a survey conducted by Guidant Financial, 55% of small business owners said they opened their business for the “opportunity to pursue their passion” (4). This sentiment, while not easily quantifiable, is a priceless aspect of small business ownership that elevates the experience beyond mere financial considerations.
5. Enriching Local Communities and Cultivating Customer Relationships
Small businesses are more than economic units; they are integral threads in the fabric of their local communities. They contribute to the diversity of local markets, enrich the community culture, and forge direct, personalized relationships with customers. This capacity to provide personalized service and foster local relationships is a competitive edge that large corporations often can’t replicate.
What’s the takeaway?
So, is it still worth being a small business owner in 2023? Undeniably, the answer is a resounding yes. Yes, there are still many reasons for being a small business owner. While challenges undoubtedly exist, the rewards – both tangible and intangible – make the journey of small business ownership more relevant and exciting than ever. As a small business owner in 2023, you’re not just building a business; you’re contributing to economic dynamism, creating value, and driving societal impact. And that’s an endeavor worth undertaking.
(1) U.S. Small Business Administration. (2021). Small Business GDP: Updated 2002-2018. https://www.sba.gov/advocacy/small-business-gdp-updated-2002-2018
(2) Deloitte. (2017). Connected Small Businesses in the United States. https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/connected-small-businesses.html
(3) U.S. Small Business Administration. (2021). Small Business Jobs Act. https://www.sba.gov/funding-programs/loans/small-business-jobs-act-2010
(4) Guidant Financial. (2018). Small Business Trends: 2018. https://www.guidantfinancial.com/small-business-trends/