Small Business Administration Facts
You may have many questions about how the Small Business Administration works when considering opening your own small business. While it may seem confusing at first, by reading and researching many of your frequently asked questions can be answered simply and easily.
What does a Small Business Administration actually do? They provide SBA loans for small business owners by contacting credit unions and banks or other types of lenders. The SBA gives the business owner a guarantee backed by the government.
What is the purpose of the Small Business Administration? It was created in 1953 by our United States Congress after the Small Business Act was passed. The SBA’s goal was to help small business owners and entrepreneurs by giving counseling, aid, and protection of the business and its owners.
How do you know if your business qualifies as a small business? According to the SBA, companies with up to $35.5 million in sales and around 1500 employees, of course, this depends on the industry also. Also, for those businesses outside of the government that have less than $7 million dollars in sales and fewer than 500 employees are also considered a small business.
How do you know if you qualify as a small business? The SBA does have certain standards in order for your business to qualify, but if you do you are also eligible for certain perks that larger businesses do not receive. One fact is that around 99.7% of all business are small businesses, in the United States.
What type of small business is the most profitable? The list of the most profitable small businesses isn’t large, but there are more small businesses opening every day. Here are ten of the most profitable small businesses:
House Cleaning Services
Commercial Cleaning Services
Website Design Services
Tax Prep and Bookkeeping
Technology Repair Services
If your small business doesn’t fall into one of these categories, don’t despair. There is a small business inside all of us, we just have to find it and let it loose.
How do you know if you should open a small business? While everyone is unique, ask yourself these questions when considering whether or not to open your unique small business. Each individual has different needs, let these questions be your guide to making your decision.
Do you have the time?
Do you have the finances?
Do you have the courage?
Do you have connections, the right ones?
Do you have skills, or can you acquire them?
Do you have great ideas or insights on how to grow your business or can you acquire them?
Do you have a way with people, and getting them to listen to your ideas?
Do you think you can commit to such a job?
Do you realize that your success isn’t a guarantee?
Who is the head of the Small Business Administration? The head of the SBA is a member of President Trump’s cabinet. Linda McMahon is the 25th Administrator of the United States Small Business Administration.
Why are small businesses important to the US economy? While large businesses are everywhere, a small business is just important to our economy as a larger one. Small businesses bring growth and ideas to the thousands of communities that make up our United States. They bring job opportunities to those individuals that may not work for larger corporations or are not able to be employed by those larger companies for any reason such as background or even physical ability. Small businesses also play a part in contributing to local government with taxes. Which also can lead to growth in small communities. It’s a win-win situation however you look at it.