Since November 2016, almost 5 million jobs have been created in the U.S. which has reduced the unemployment rate to below 4%, the lowest since 2000. The economic growth rate for 2018 was also higher than the growth levels in recent years. These economic advances would have been hard to imagine just five years ago, much of which can be attributed to small business.
Lowering the tax rates, reducing the government red tape and other federal policies laid the groundwork for the economic advances. However, credit must also go to the hardworking entrepreneurs who took advantage of the favorable policies to establish more businesses.
Small businesses are often considered the backbone of the American economy because they employ almost 60 million people—or half the U.S. workforce. Two-thirds of all new jobs were created by small businesses.
It is seldom mentioned but women entrepreneurs are playing a growing role in the U.S. economic sector too. As of January 2017, 11.6 million women-owned businesses in the U.S. employed almost nine million people and earned over $1.7 trillion in revenue. In fact, almost 40 percent of all U.S. businesses are women-owned.
Over the last two decades, women-owned businesses grew at a rate that is more than twice the other businesses in general. This translates into 849 new women-owned businesses being created each day.
To keep the momentum going, a number of policy pursuits are recommended. One is to reduce small business taxes at the state level similar to the Tax Cuts and Jobs Act. Lowering taxes would not only make it easier for current women-owned small businesses to expand, but would also show undecided female entrepreneurs that it’s time to start their own ventures, too.
Eliminating thousands of unnecessary regulations is another policy that would reduce the barriers to entrepreneurship. Almost a quarter of women-owned businesses are in the services industry and removing absurd licensing rules would encourage further female entrepreneurialism in this sector.