Not So Small!
Posted by: Tad Weiss on May 2, 2017, Latest News
You may have heard that this week is National Small Business Week. The technical definition of a Small Business is an independent business with fewer than 500 employees, but I certainly think of businesses on the low end of that range when I hear the term. In 2013, 48% of the workforce was employed by companies with less than 500 employees. Companies with 20-99 employees made up 16.7% of the workforce, and companies with 1-19 employees made up 17.3% of the US workforce.*
The trend certainly seems to be moving towards small businesses too. The number of small businesses in the United States has increased 49% since 1982. Since 1990, big business has eliminated 4 million jobs, while small businesses have added 8 million new jobs.** Much of this shift can be attributed to increased productivity and efficiencies at large companies, with many displaced employees moving their talents to smaller firms or starting a business of their own. A CNN Money report on technology dated January 18, 2016, estimated that technology, specifically in the areas of robotics and biotechnology could eliminate 5 million jobs by 2020. We believe that much of this displacement will occur at larger firms, continuing the trend to small business that we’re seeing in the US.
At Modus Advisors, we specialize in working with the small business owner. When you own a small business, your business and personal finances often become one and the same. There are many strategies and tools available to the small business owner that can help him or her work towards building wealth outside of their business, address the advantages that the tax code affords, and attract and retain key employees.
We understand small businesses because we are one ourselves, and we spend a lot of time researching and implementing the various strategies a small business owner can employ. We are especially interested in any new tax policies coming out of Washington as this could potentially have a significant impact on small businesses. You can be confident we will stay abreast of new policy and be ready to help you capitalize on opportunities. Contact us if we can help you plan and manage the future of your small business.
*U.S. Small Business Profile, 2016, U.S. Small Business Administration.
**The U.S. Small Business Administration, Small Business Trends, April 17, 2017.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The economic forecasts set forth in this material may not develop as predicted.
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