Everyone agrees on a broad level that small businesses are vital to the American economy. However, most people would be surprised to know just how important. The United States Small Business Administration keeps records and statistics on small business in the United States and some of their findings are surprising.First, the typical perception of a small business as a mom and pop operation with just a few, if any, employees is not the entire picture. The Small Business Administration defines a small business as an independently business with less than 500 employees. There are an estimated 23 million businesses in the United States that meet that classification. In some smaller towns in the United States, these businesses represent a major source of employment.In fact, small businesses as defined by the Small Business Administration represent 99.7 percent of all the employers in the country and employ half of all private sector employees. More than 45% of the private sector payroll is generated by small business. Over the last decade small businesses have accounted for 60 to 80% of all new jobs created on an annual basis.Although a large percentage of small businesses are in the retail and service sectors, small businesses are rapidly making gains in the technology sector. 41% of high tech workers like engineers, scientists and computer programmers are employed by small businesses. Employees at small businesses produce 13 to 14 times more patents than those employed by larger companies.The Small Business Administration also offers some interesting observations on small business survival. Two-thirds of small businesses survive for at least two years declining to 44% after four years. Most of the factors that support a small business surviving are well known, such as access to capital and owner’s education level. However, a lesser known factor in small business survival is that the business is large enough to have employees.Similarly, barriers to starting a small business include lack of access to start-up capital and lack of education. However, the number one barrier to small business start up and a primary concern of existing small business owners is access to private health insurance. Individual health insurance for sole proprietors is much more expensive than receiving coverage through an employer. If a small business owner is able to offer health insurance to its employees, the administrative and premium costs are often much higher than those for larger businesses.
Business Technology – Measuring Value Of
Each year, new office technologies are introduced. Different versions and the constant availability of upgrade options influence and complicate purchase decisions. Budgetary constraints require that companies carefully consider their business needs and potential value derived from making any type of business technology purchase. Companies can follow these tips to make the best technology purchases for the businesses.The quality of the purchase and the price are linked. Although there are a lot of free and cheaper solutions available, the right purchases will bring value to an organization. If increased productivity is the aim, then the company should consider investing more when making a purchase. A company should expect the purchase price to be a good indicator of the level of productivity or performance to be expected as a result of buying a solution.Whether or not a technology or system to be implemented across the organization is available as a lease option may be another key consideration. For some businesses, leasing is a viable option as it spreads the costs out over a period of time and locks in certain service options. Leasing gives a company a chance to remain current on some technologies in some cases. It may also be an option for a company in need of an immediate upgrade. A company may need a longer timeline to circumvent upfront cost requirements.Some companies are able to recoup costs on their office technology by reselling it. If a company is considering a specific technology, it may want to consider resale value as well. In addition to gauging productivity and efficiency, resell value may be a good way to assess value. Conducting research on the brands will reveal resell value and other depreciation information.Warranty is another consideration. Warranties should be considered a part of the value for any purchase. Warranty information on service and replacement terms matter in the long run with any office technology purchase. Looking beyond price and features into whether or not a warranty is available is another smart way of assessing the value of a purchase.In addition to features and performance capabilities, a company should look at other areas when planning for investments in technology. When a company invests in business technology, it should look for a solution that will deliver in productivity and contribute to meeting the company’s overall business objectives. Lease and resell value can be used to control costs with technology purchases. Warranties are often a good way to measure the value of a purchase.