Last week, National Small Business Week celebrated the contributions of America’s entrepreneurs and small business owners, with a significant increase in new business applications since the start of the Biden-Harris Administration. Data from the U.S. Census Bureau showed a record-breaking number of nearly 16 million new business applications, marking an 85% increase compared to previous years. Women-owned businesses have also seen substantial growth, with an estimated $2.1 trillion in receipts in 2023 alone.
The Small Business Administration (SBA) released its Procurement Scorecard, revealing that in Fiscal Year 2023, the Biden-Harris Administration awarded a record-high of $178.6 billion in federal contracts to small businesses. This milestone represents an increase of over $15 billion from the previous year, with increases across demographics, including minority-owned firms. However, there were criticisms regarding the federal government’s failure to meet its 5% goal for the Women Owned Small Business Program (WOSB).
Positive economic indicators, such as a decrease in inflation, an increase in income, and low unemployment rates, have contributed to the highest level of optimism among small businesses in over 20 years. Surveys have shown that CEOs and small business owners are highly optimistic about the national economy and the prospects for their own businesses. The growth in consumer sentiment and GDP growth in the second half of 2023 have also contributed to the positive outlook.
Asian American, Native Hawaiian, and Pacific Islander (AANHPI) business owners have been identified as one of the strongest segments of the economy, with significant buying power and an optimistic outlook for the future of their businesses. The growth and optimism being felt across the country are a testament to the resilience and progress of Main Street businesses in the face of challenges like the Covid-19 pandemic, which forced the rescheduling of National Small Business Week just four years ago.
As the small business community celebrates its achievements during National Small Business Week, there is recognition of the ongoing challenges that lie ahead. Healthcare costs, access to capital, and tax policies are areas that need improvement to ensure the stability and prosperity of Main Street businesses. Despite the current optimism, small business owners understand that crises can happen at any time and that continued efforts are needed to create a supportive environment for entrepreneurship and economic growth.
