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National Small Business Week has started. Here’s why that matters.

Last week, BBVA Compass announced its annual Small Business Month, which includes special offers for small business clients, seminars and contests designed to help entrepreneurs elevate their operations.

The annual small business month stems from National Small Business Week, which is celebrated every year across the country. To start the celebration each year, the President of the United States issues a proclamation announcing National Small Business Week, which recognizes the critical contributions of America’s entrepreneurs and small business owners.

This year’s week-long recognition started on May 6.

So why does this week exist to help small businesses achieve their goals?

small-business-harvey

Below are a few statistics relevant to the impact small businesses have on the U.S. and its economy:

  • Of the 5.6 million employer firms in the United States in 2016 (latest data), firms with fewer than 500 workers accounted for 99.7 percent of those businesses.
  • Employer firms with fewer than 500 workers employed 46.8 percent of private sector payrolls in 2016.
  • United States small businesses employed 58.9 million people, or 47.5% of the private workforce, in 2015.
  • Small businesses created 1.9 million net jobs in 2015.
  • There are 30.2 million small businesses in this country, which comprise 99.9% of all United States businesses.

While the numbers indicate that small businesses are essential to U.S. employment and economic prosperity, small businesses do have difficulties when starting their operations, as only about two-thirds of business survive two years in existence, half of all businesses will survive five years, and one-third will survive 10.

The importance of small businesses for thriving communities are shown in the above numbers, and National Small Business Week is a key time of the year for entrepreneurs across the country. Shopping local could help these businesses turn the tide on survival statistics.

Want to see what the Small Business Administration has going on this week and need more information? Click here.

Want to see what BBVA in the U.S.A. has going on for Small Business Month? Click here.

For more information on BBVA small business products, click here.

*Statistics gathered from The Bureau of Labor Statistics and the U.S. Small Business Administration Office of Advocacy.