Recognizing the Strength and Resilience of SMBs during National Small Business Month

May is National Small Business Month and kicks off each year with National Small Business Week (NSBW), an event that has been celebrated for more than 50 years to recognize and honor the contributions of small businesses to our economy. With over 33 million small businesses in the U.S., these companies make up 99.9% of all businesses nationwide according to the U.S. Chamber of Commerce. Per the U.S. Small Business Administration (SBA), a record breaking 5.5 million new business applications were filed in 2023, with an average of 440,000 applications per month since 2021. These are the people with hopes and dreams of providing products and services to you every day.

Starting a business in the U.S. can be relatively easy, but according to the U.S. Bureau of Labor Statistics, roughly 50% of small businesses survive the first 5 years. Despite these challenges, many entrepreneurs continue to start new businesses each year, including minority-owned companies. According to the U.S. Senate Committee on Small Business & Entrepreneurship, minority-owned enterprises accounted for more than 50% of the 2 million new businesses started in the U.S. over the last 10 years, creating 4.7 million jobs. There are now more than 4 million minority-owned companies in the U.S. with annual sales totaling close to $7 billion dollars.

TriNet hosted SBA Administrator Isabel Casillas Guzman and José Quiñonez, Founder and CEO of Mission Asset Fund earlier this year to discuss challenges these important business owners face, including access to capital and how they can cultivate solid funding opportunities. This insightful conversation can be found here.

Recent data from the United States Census Bureau shows:

• African American-owned businesses make up about 2.7% of all businesses.
• American Indian/Alaska Native/other Pacific Islanders-owned businesses have an estimated 307,933 employees and about $12.9 billion in annual payroll.
• Asian-owned businesses, with about 24% in the Accommodation and Food Sector Services, had the largest estimated receipts ($1.0 trillion) among minority race groups.
• Hispanic-owned businesses make up 6.9% with an estimated 3 million employees and about $124.4 billion in annual payroll.
• Veteran-owned businesses make up about 5.2% of all businesses with an estimated 3.3 million employees and $179.9 billion in annual payroll.

As a whole, small and medium-size businesses (SMBs) drive innovation, technology, competition, and economic growth. Small business owners still face numerous challenges when starting and running their businesses and often need help managing a variety of HR tasks. That's where professional employer organizations (PEOs) like TriNet come in. PEOs offer a range of HR services that can help drive SMB success, including HR expertise, payroll processing, risk mitigation and benefits administration. PEOs can also help businesses attract and retain the talent they need to succeed by offering access to premium benefits and programs to help with safety and compliance, and all of these help with business growth.

To help small business owners navigate these challenges and take advantage of the benefits of using a PEO, TriNet recently hosted its third annual Small Business Week Summit from April 29 through May 3, 2024. This virtual event brought together recognized industry leaders and business owners to share their experiences and insights and offer guidance to help small businesses succeed.

Also in recognition of NSBW, TriNet sponsored the U.S. Small Business Administration Virtual Summit, co-hosted by SCORE, and moderated a panel of esteemed small business advocates for the Bipartisan Policy Center, to identify what bipartisan actions will best help small business grow and thrive. A replay of the panel is available here.

Additional resources for SMBs are:

• Economic Development Association (EDA): Provides grants and other resources to support economic development in communities across the U.S.
• Small Business Administration (SBA): The only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise.
• Small Businesses Development Centers (SBDC): Provides counseling and training to SMBs including developing and providing information and tools to support start-ups and existing business expansion.
• National Small Business Association (NSBA): A nonprofit organization that advocates for SMBs and provides resources to its members.
• Service Corps of Retired Executives (SCORE): A nonprofit organization that fosters vibrant small business communities through mentoring and education.

In addition to the great agencies and organizations listed above, we also encourage entrepreneurs to explore resources available on TriNet’s HUB site for access to thought leadership, webinars, and a curated list of government opportunities for underrepresented businesses.

Simply put, SMBs are the backbone of the U.S. economy, and National Small Business Month is an opportunity to celebrate their contributions and honor the people who run them. Small business owners may face certain HR challenges, and TriNet can help these businesses thrive and continue to drive economic growth for years to come. To learn more about how TriNet can help support small businesses, click here.