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Education

Small businesses: • 72 percent of this group self-identifies as white,
while 13.5 percent are Latino, 6.3 percent Black, 6.2
percent Asian, and 2 percent other
The most valuable A recent SBA Small Business Profile report called out

B2B customer growth percentages by small business ownership,
highlighting that, from 2007 to 2012, the percentage of
minority ownership grew by 38.1 percent, while non-
By O.B. Rawls IV minority ownership shrunk by 5.5 percent. The following
iPayment Inc. data excerpted from the report shows that small business
ownership in the United States is becoming vastly more
mall businesses can be tough. They're challeng- diverse.
ing to contact, often pressed for time with very • African American-owned: +34.5 percent
little resources or support around them, and • Asian-owned: +23.8 percent
S they typically buy the easiest solution at the
lowest price. • Hawaiian/Pacific Islander-owned: +45.3 percent
• Hispanic-owned: +46.3 percent
In business-to-business (B2B), some companies focus
on moving up-market, targeting midsize and larger • Native American/Alaskan-owned: +15.3 percent
enterprises, purposefully avoiding small businesses.
But regardless of the challenges, small businesses are We know a little bit about who these individuals are, but
what are their core business areas? Looking specifically at
powerful, imperative to our economy and a critical cog in
the wheel for many in and around B2B. I believe they're the small businesses that fall in the one to 19 employees group,
the top five industries are professional, scientific and
most valuable customer and, like any targeted prospect,
those focused on selling to the small business market technical services; other services; retail trade; construction;
and healthcare and social assistance. Ironically, these are
must first understand who they are.
also the top five groups when you look at small businesses
Power in numbers (those with up to 499 employees).
According to the U.S. Small Business Administration, Wants and needs
there are over 28.8 million small businesses in the United
States accounting for 54 percent of all U.S. sales, and It's often said that small business owners work in their
businesses, not on them. Is this true? It really depends on
growing. The number of small businesses in the United
States has increased 49 percent since 1982. Since 1990, the owner, business type and number of employees. A May
2014 TD Bank survey of small business owners found that
small businesses have added 8 million new jobs, while
big businesses have eliminated some 4 million. Small 68 percent said they love speaking and engaging directly
with clients and customers;15 percent favored the "back of
businesses (those with 1 to 19 total employees) represent
17.3 percent of all employment in the country, according the house" ‒ bookkeeping, business management, etc.
to the SBA.
Many, especially in the beginning, wear lots of hats:
But who are they? And what are their core challenges and customer service, inventory manager, bookkeeper, etc.
needs? Sometimes, they even do maintenance. They have no
choice.
Independent owners
Goldman Sachs has been active in small business support
Demographically, small business owners might surprise since it launched its philanthropic initiative, 10,000 Small
you a bit. Here are a few key statistics from a 2016 Babson Businesses, in 2009. As part of this, the company regularly
College survey focused on small business owners. produces reports and shares statistics from businesses
• 51 percent of small business owners are over the age coming into the program. A recent 10KSB report outlined
of 50, with 33 percent ranging in age from 35 to 39 the top four challenges that owners identified as they
and only 16 percent under 35 entered their program.
• 36 percent of small business owners are female, 1. Finding and keeping customers (31 percent)
while 55 percent are male and 9 percent are classified 2. Financing the business (21 percent)
as equal ownership (male/female) 3. Developing and updating a business strategy (16
• 39 percent have earned a bachelor's degree or higher, percent)
33 percent have some college experience, and 28
percent have no advanced education 4. Hiring and keeping good employees at reasonable
wages (15 percent)

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