Small Businesses

Small Businesses

Poll

Do you know anyone who owns and operates their own small business?

• Yes

• No

• Maybe (not sure)

Poll

Have you ever considered starting a business?

• Yes I have

• Sort of / somewhat

• No I haven't

So, how small is a small business?

• A small business can have as few as 1 employee. For example, someone who makes and sells jewelry could be a small business owner.

• Technically, according to government regulations, a small business can have up to 200 employees and multiple locations. That might seem like a lot, but it's still comparatively small.

Small Business vs. Big Business Example

The restaurant La Rancherita (in Tarboro) has 4 locations and about 100 total employees. So technically, it's considered a small business. Meanwhile, Taco Bell has 8,000 locations in the U.S. and more than 200,000 employees (including at franchised locations). So it's considered a big business.

Multiple Choice

Which of these would be considered a small business?

• Dollar General

• Big Jim's

• Walmart

• Burger King

Open Ended

What do you anticipate would be one difference between working for a small business and working for a big business?

Small Businesses in NC

• In North Carolina, there are close to 1 million officially registered small businesses

• Small businesses in NC make up 99% of the total number of businesses

• Small businesses in NC employ about 1,700,000 people. That's around 45% of the total workforce.

Small Businesses & Jobs

• Small businesses create about 1.5 million new jobs each year, and account for 64% of new jobs created in the U.S. This means that small businesses generate a majority of the new jobs in the U.S.

• Meanwhile, large businesses and corporations tend to reduce jobs each year. This is due to a variety of factors including increased automization (machines doing jobs that people used to do) and outsourcing (hiring people in other countries to do jobs that people in the U.S. used to do, usually because it's cheaper.)

Multiple Select

Based on the previous slides, which of the following statements are true?

• There are more small businesses than big businesses in NC

• Small businesses employ more people than big businesses in NC

• Small businesses generate more new jobs than big businesses in NC

Multiple Choice

Based on the information presented on the previous slides, which of the following inferences could we reasonably make about small businesses and the economy?

• Small businesses are damaging to the economy because they lead to unemployment.

• Small businesses have little to no effect on the U.S. economy.

• Small businesses are important to the health of the economy because they create new jobs.

Unemployment Rate

• The unemployment rate refers to the percentage of people who are trying to get jobs and can't.

• Obviously, a lower rate is better because it means that more people are able to get jobs.

• People who don't have jobs but don't want jobs don't count in the unemployment rate. For example, people who are already retired don't count.

Unemployment Rate in Edgecombe County

• In February of last year (2020), the unemployment rate in Edgecombe county was 5.3%.

• In May of last year, it was all the way up to 15.4%, which is the highest it's been in 10 years.

• Now, the rate is 9.5%, which is better than it was, but still higher than average.

• As you probably imagined, Covid19 was the cause of this spike in unemployment.

Open Ended

In your own words, why did the Covid19 pandemic lead to high unemployment rates in Edgecombe County (and across the country)?

Multiple Choice

Based on what we've learned about small businesses and the economy so far, which logical conclusion could we make about small businesses and unempoyment in Edgecombe County?

• More small businesses would lower the unempoyment rate by providing more jobs

• More small businesses wouldn't affect the unempoyment rate

• More small businesses would increase the unempoyment rate by reducing jobs

Starting a Small Business

• Starting a small business might actually be more attainable than you may think it is.

• When you're thinking of starting a small business, consider these 4 things: 1) What am I good at? 2) What do I love doing? 3) What would benefit my community? 4) What could I get paid for?

Open Ended

As of now, if you were to start your own business, what would it be? (You can change your mind later-- you're not locked in!)