Start-up businesses are the engine of economic growth

Big multi-national corporations and Wall Street are driving our national economy. That is, at least, what many consumers of print, radio, and TV news are lead to believe. However, this is far from the truth. In reality, 99.7 percent of U.S. employer firms are small businesses according to the recent 2010 U.S. census.

Small businesses are job creators. Though only 21.5 percent of small businesses actually are employers (U.S. Census 2010) a whopping 49.2 percent of all employees in the private sector of our economy are working for a small business. Small businesses create two out of three new jobs.

These figures are a convincing testimonial for the contributions of small privately-held businesses to our national economy.

So, why not start your very own small business instead of remaining stuck in a dead-end job?

There are multiple answers to this question. But the main objection to starting a new business is that the failure rate of start-up ventures is rather high. About fifty percent of new businesses survive the first five years. Survival rates increase after that.

Yet, proven ways to increase the odds of survival of a new business are often hidden in inconspicuous headlines such as “UPS Franchise for sale” or something to that effect. Starting a new business as a franchise of an established and successful enterprise greatly improves the odds of success because the new business can rely on already established procedures, products or services. They take much of the guesswork out of starting a new business. Your ‘new’ business instantly advances into the column of enterprises that have survived the first five years or so.

True, it takes cash to buy a franchise. But it also takes cash to start your own business. Your odds are far better with a franchise than going on your own.