Small Businesses: The Heart of the US Economy
As of the end of 2017, to the beginning of 2018, the US economy has been steadily increasing, and breaking records almost every month. As of March 2018, a new record had been broken dealing with one of the most important factors in determining the stability of the U.S economy. It was recorded that, â€œ one-third of small business raised compensations in Marchâ€, which was the largest pay increasing since November 2000.
This is largely due to the fact that the job markets are becoming more and more competitive, therefore according to most small firms â€œthey feel optimistic, hiring and willing to raise wages to find the right employees for the businessesâ€. This optimism directly translates to a boon in the overall U.S economy, since the majority of business in the United States are considered small business. Having one-third of small business â€œfeeling optimisticâ€ about hiring new employees, while also increasing wages provides a direct stimulus to the U.S markets, and in general a much more confidence in the US economy for future employees, and investors.
Small business in the United States provides the most effect on the U.S economy, due to the fact that they contribute to local economies by bringing growth and innovation to small communities all over the country. Having small business declare that they are willing to increase wages in order to bring aboard more employees, helps small communities by providing employment to people who may not be employable to larger corporations. This then results in a much lower unemployment rate, and a much more prosperity all over the nation.