We’ve all read about the importance of small businesses to the American economy, but just how small is small?
According to the California Association of Microenterprise Opportunity (CAMEO), the answer is micro. CAMEO believes microbusinesses are the backbone of the American economy and will continue to be in the future.
It defines a microbusiness as a business that has five or fewer employees, requires $50,000 or less in initial capital and may not have access to traditional commercial loans.
The microbusiness community is indeed huge, as CAMEO says these microbusinesses make up 88% of all businesses in the United States and there are a staggering 26 million of them.
These businesses form what CAMEO calls the foundation of the new economy which will feature a strong infrastructure of small, locally owned, diverse businesses. The vast majority of these businesses are non-employers. Together, they generate more than $1 trillion for the U.S. economy each year.
This is why CAMEO advocates for California investing in local entrepreneurial ecosystems that enable more Californians to become their own bosses. When small businesses succeed, the organization says, they create jobs and wealth for their families, plus they help build their neighborhoods and communities so that California and the country can thrive.
CAMEO’s mission is to expand resources and help its member organizations provide entrepreneurs with small business training, business financing, and technical assistance like business coaching, capital, and networking opportunities.
So, even if your business idea seems microscopic, don’t be afraid to give it a shot. You may find yourself as a microbusiness owner instead of a small business owner.
Microbusiness resources in the San Diego region:
- ACCION San Diego
- CDC Small Business Finance
- Easter Seals Southern California
- International Rescue Committee San Diego
- San Diego/Imperial Counties SBDC
[Main photo courtesy of Sonny Abesamis on Flickr]