Small Business in Gilbert, AZ:
Insights from National Surveys, The Small Business Administration, and ZipRecruiter
National Small Business Week 2024 was April 28 – May 4, 2024. A recent study sheds light on the shared traits among millions of small businesses across the United States. The Pew Research Center conducted a comprehensive survey, analyzing Census Bureau data related to a staggering 33 million small businesses. These businesses, as defined by the study, encompass firms with fewer than 500 employees and at least one operational location. By the way, that Small Business Administration also defines a small business as an independent enterprise with fewer than 500 employees.
The findings of the report unveil a striking commonality among small businesses: a significant portion operate without any paid employees. Surprisingly, approximately 82% of these enterprises, totaling 27 million, function without a workforce (independent contractors, consultants, and solopreneurs). Among the minority that do employ individuals, nearly 3 million businesses have a staff size ranging from one to four employees.
Despite their modest size in terms of personnel, small businesses play a pivotal role in the economy, collectively employing 56.4 million individuals and generating over $16.2 trillion in revenue in 2021. However, larger corporations with more than 100 employees claim a substantial portion of this revenue, despite comprising less than 1% of the total number of businesses.
Contrary to popular belief, most small businesses do not fit the traditional mold of mom-and-pop shops. Only a fraction, approximately 27%, are family-owned, with a mere 10% being equally owned and operated by spouses. The prevalence of franchises is notably low, with a staggering 95% of small businesses operating independently from franchise models. Nolo explains why the franchise model is a bad fit for many.
Another noteworthy aspect highlighted by the survey is the longevity of these enterprises. Nearly three in five small businesses have sustained operations for at least six years, with a commendable 15% boasting a track record of over 25 years of continuous operation.
Perceptions of small businesses among the American populace remain overwhelmingly positive. According to a separate Pew Research survey conducted in January, a staggering 86% of Americans view small businesses as beneficial contributors to the country. This sentiment contrasts sharply with the relatively lower favorability ratings bestowed upon tech companies and colleges, with only 53% expressing positive views towards these institutions.
What is the Pew Research Center?
In a global context, the economic climate remains a source of concern for small businesses. A recent survey by Constant Contact, encompassing 1,300 small businesses across the United States, Australia, the United Kingdom, and Canada, revealed that over 80% of respondents expressed apprehension regarding the potential impact of economic fluctuations on their operations in the current year. The risk-reward dynamic is strong in small business.
Pew Research has reported a noticeable upward trend in the number of business applications filed in the United States. With nearly 1.8 million applications submitted in 2023 alone, this data underscores the enduring entrepreneurial spirit and resilience of small business owners amidst evolving economic landscapes.
Coworking Spaces- Ground Zero for Small business in Gilbert, Arizona
In Gilbert, Arizona (The largest town in the United States), The Works stands as a testament to the thriving culture of coworking spaces. Situated in the heart of Gilbert at the northeast corner of Ray and Higley Roads, The Works offers a collaborative environment tailored to the needs of small businesses and entrepreneurs. Through shared workspaces, conference rooms, networking opportunities, and the right amenities, The Works fosters innovation and growth within the Gilbert, AZ business ecosystem.
Liquidspace lays out
Small Business Owner Salaries in Gilbert, Arizona
ZipRecruiter paints the picture of how Small Business in Gilbert AZ is performing. As of April 26, 2024, small business owners in Gilbert, Arizona, earn an average annual salary of $132,693. That breaks down to roughly $63.79 per hour, $2,551 per week, or $11,057 per month.
While salary ranges can vary significantly, with ZipRecruiter reporting figures ranging from $25,419 to $338,416, the majority of small business owners in Gilbert fall within the $91,700 to $145,000 range. However, top earners, representing the 90th percentile, make an impressive $292,562 annually.
The broad salary range suggests that there are ample opportunities for advancement and increased pay based on factors such as skill level, location, and years of experience. With recent job postings indicating a highly active job market for small business in Gilbert and the surrounding area, individuals in this profession can expect a dynamic and competitive landscape.
When analyzing related job categories in Gilbert, ZipRecruiter found several positions that offer competitive salaries, although none surpass the average salary for small business owners. However, roles such as Small Business Finance, Senior Business Banker, or Business Owner may still present intriguing opportunities for individuals seeking positions within the small business sector.
Here are the top five best-paying related jobs related to small business in Gilbert, along with their respective annual salaries:
- Business Owner: $130,818 annually, $10,901 monthly, $2,515 weekly, $62.89 hourly
- Senior Business Banker: $124,674 annually, $10,389 monthly, $2,397 weekly, $59.94 hourly
- Small Business Finance: $106,511 annually, $8,875 monthly, $2,048 weekly, $51.21 hourly
- Small Business Specialist: $102,968 annually, $8,580 monthly, $1,980 weekly, $49.50 hourly
- Business Specialist: $101,392 annually, $8,449 monthly, $1,949 weekly, $48.75 hourly
Insights from the Small Business Administration
Small businesses are the backbone of the American economy, contributing significantly to economic growth, job creation, and innovation. The Small Business Administration (SBA) provides valuable insights into the landscape of small businesses through comprehensive statistics and data analysis. Here are some frequently asked questions about small businesses, along with key findings from the SBA’s research:
1. What is a small business?
The SBA generally defines a small business as an independent enterprise with fewer than 500 employees. For specific industry-level size standards, the SBA provides a Table of Size Standards.
2. How many small businesses are there in the U.S.?
As of the latest available data, there are over 33 million small businesses in the United States. Among these, approximately 81.7% are non-employer firms, meaning they operate without paid employees, while the remaining 18.3% are employer firms.
3. What is the role of small businesses in the economy?
Small businesses play a crucial role in the economy, comprising 99.9% of all firms in the country. They account for 99.7% of firms with paid employees, 97.3% of exporters, and contribute significantly to employment, gross domestic product (GDP), payroll, and receipts.
4. How many net new jobs do small businesses create?
From 1995 to 2021, small businesses generated 17.3 million net new jobs, compared to 10.3 million created by large businesses. Small businesses have consistently accounted for approximately 62.7% of net new job creation during this period.
5. How has COVID-19 impacted small businesses?
The COVID-19 pandemic had adverse financial effects on many small businesses. However, the percentage of businesses reporting a large negative impact declined from 51.4% in April 2020 to 21.6% in April 2022. Industries such as accommodations and food services were particularly affected, with 44.7% of businesses still negatively impacted by the pandemic in April 2022.
6. What is the new business survival rate?
On average, about 67.7% of new employer establishments survive at least two years, with five-year, ten-year, and fifteen-year survival rates at 48.9%, 33.7%, and 25.6%, respectively. Survival rates vary by owner demographic, with slight differences observed among different demographic groups.
7. How many businesses do veterans own?
Veterans own approximately 6% of all U.S. employer firms, totaling about 331,151 establishments. Additionally, veterans own about 5.4% of non-employer firms. At the Works, several members are veterans. If you’re a veteran considering becoming a small business owner, you have resources from the U.S. Department of Veteran Affairs and the Small Business Administration.
8. How are most small businesses legally organized?
A majority of non-employer firms (86.5%) are sole proprietorships, while small employer firms are often structured as S-corporations, comprising more than half of such businesses.
9. What is the average size of a business with employees?
In 2020, the average employer firm had 24.9 employees, with small firms averaging 11.7 employees and large firms averaging 3,297.3 employees.
10. What percent of firms are family-owned?
Approximately 28% of employer firms are family-owned, with the highest concentrations observed in management of companies and enterprises and agriculture, forestry, fishing, and hunting industries.
The data provided by the Small Business Administration offer valuable insights into the diverse and dynamic landscape of small businesses in the United States. Despite challenges such as the COVID-19 pandemic, small businesses continue to play a vital role in driving economic growth and fostering innovation across various industries.
The Pew Research Center’s survey illuminates the remarkable resilience and diversity of small businesses across the United States. From their significant contributions to the economy to their enduring presence in communities nationwide, these enterprises continue to shape the fabric of American entrepreneurship. And it’s on full display at 1525 S Higley Rd,Suite 104, Gilbert, AZ 85296.
