Keeping small businesses healthy is important to overall economy

The Washington Post started a new blog series, written by Karen Mills, administrator of the U.S. Small Business Administration (SBA). In her most recent piece, Mills explained how important small companies are to the overall success of the American economy, and why it is necessary for the government to feed those organizations' needs however they can. 

According to Mills, the vast majority of U.S. small businesses are sole proprietorships, which are responsible for 23 million American jobs. These companies also reflect a diverse and important array of professions, including consultants, IT specialists, painters and roofers.

"Recent research shows that sole proprietorships are achieving record profit margins - and the number of these businesses will continue to grow as technology allows more geographic flexibility and baby boomers look to open their own firms," she said.

Then, there are what Mills called "Main Street" small businesses. These firms are the dry cleaners, mechanics and medical clinics that form the fabric of our communities and make up about 70 percent of the jobs in the country. It is especially important for these companies to have strong lifelines, including everything from loans to advice.

Additionally, all small and medium-sized businesses can benefit from the right general business insurance policy. The industry, company location and whether travel is involved or not can affect which coverages are available. Working with commercial insurance specialists can help owners find the best policies for their organization.

While the SBA is able to offer loans, it is important for companies to have insurance policies in place in case they cannot qualify for a loan. It is better for owners to have coverages and not use them than be struck by natural disaster or vandalism and wish that they did.

 

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