Small business and big business, a symbiotic relationship
By BuildMyBiz on March 25th, 2013
A new report from the Center for an Urban Future shows that small businesses are profiting from teaming up with large companies.
The report points out that small companies benefit from supplying corporations with goods and services. This supply-chain partnership is providing main street shops with the business they need to rebound in the wake of the Great Recession, and is becoming a major source for small business funding.
After becoming suppliers to corporations, 70 percent of the small businesses surveyed in the report noted an increase in both jobs and revenue.
When small businesses that supply larger companies are compared to those that do not, the advantage of doing so is apparent. Of those that are part of the corporate supply chain, 63 percent report earnings of more than $500,000 per year. Small business not part of that supply chain are less likely to see such profits. A sizable 77 percent of non-suppliers report earnings under $500,000 per year.
As small business goes, so does the economy. According to the Small Business Administration, half of the paid employees in America are employed by small firms. Also, payroll for small business accounts for 44 percent of the nation’s entire private sector payroll.
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