Small businesses account for only a minor share of an area's economic base, serving mainly local customers.
Most small businesses start small and stay small.
Small business owners are better educated and have more experience in the industry. Suggests the it may be more useful to create an environment that encourages small business start-ups and expansions, rather than to allocate resources to prevent businesses from failing. Summary This article from the Upjohn Institute investigated the role of small businesses in local economies, as well as the demographic profiles of small business owners. This would encourage entrepreneurs to explore new markets, and prevent scarce economic development resources from being used to support uncompetitive and unproductive businesses. This research shows that communities could increase the effectiveness of their small business programs by creating an environment that encourages small business start-ups and expansions.