Monday, August 01, 2016

Updated FAQs about Small Business and SB Finance

The SBA Office of Advocacy has updated its most widely used publication: "Frequently Asked Questions about Small Business."

The Small Business FAQ is the place to go to for the basics – how many small businesses are in the United States, how many employees they have, and what their growth trends are.

A related tool, "Frequently Asked Questions About Small Business Finance," is also being released. The Finance FAQ outlines the borrowing and lending universe for startups and exiting small businesses, provides demographic information, and touches on important trends in the amount and modes of finance.

Small Business FAQ

In 2013, there were 28.8 million small businesses.
• Eighty percent, or 23 million, had no employees (termed “nonemployers”)
• Twenty percent, or 5.8 million, had paid employees
• There were 18,600 large businesses.
The number of small employers has increased after a decline during the recession, while the number of nonemployers has gradually increased since 1997

Finance FAQ

Small businesses borrow for four principal reasons: to start a business, purchase inventory, expand a business, and strengthen the firm’s financial foundation. Firms choose different means of financing depending on the intended purpose. Small businesses’ financing options typically fall into two categories: debt and equity. Other unconventional sources can also play a critical role in meeting a firm’s financial needs.

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