America Turns 250: Celebrating the Small-Business Owners Who Helped Build, and Still Power, This Country
By Chris Smith, CPA, CGMA
With America’s 250th anniversary of the signing of the Declaration of Independence on July 4, I’ve been reflecting on what I see from the front lines of American enterprise. It’s been more than 30 years now since I became a Certified Public Accountant (CPA) and over 20 years since I founded CB Smith & Associates, and every day during those decades I have worked with small-business owners who embody qualities like grit, passion and determination to succeed.
These are, in fact, the qualities that continue to drive America’s economic engine. According to the U.S. Chamber of Commerce, 99.9%of businesses in the U.S. are small businesses. They employ nearly half of the American workforce and, since the late 1990s, have represented between 43.5% and 50.7% of the United States’ gross domestic output. That means trillions of dollars in economic activity.[1]
The Entrepreneurial Spirit Since 1776
America’s history is rich with the story of entrepreneurs. Life in the colonies was reliant on everyone from blacksmiths, farmers and merchants to those who owned the business enterprises that built infrastructure such as roads and bridges, sawed lumber for homes and commercial buildings, and manufactured necessities for daily living. As time moved on, business owners continually adapted to changes that took place in the entrepreneurial landscape, like the mechanization brought by the industrial era, the shift from the general store to Main Street, and eventually the need to be tech-enabled and resilient in the modern era.
Perhaps what hasn’t changed throughout the history of small-business ownership, though, are some of the realities of what it takes to get a business off the ground and keep it running: the courage to start, often risking savings, reputation or comfort; long days; and numerous stressors, from making payroll to surpassing the competition to surviving what comes (recessions, pandemics, inflation, etc.). However, those factors exist alongside the many joys of running a business, such as the jobs it creates and the stability that can bring to families, neighborhoods and regions. And business success wouldn’t be possible without the workers who show up every day to transform the owner’s vision into reality, and to keep customers coming back.
Learning From the Past, Looking Ahead
Some aspects of entrepreneurial American life continue to reflect the way it has been throughout history, and the way it will likely be in the future, too. Evolving with the changes that arise in the marketplace, and the consumer expectations that come with them, is a constant need. Innovation tends to happen from the ground up, with breakthroughs often originating in a small lab or shop rather than a boardroom, so fostering creative thinking among employees is important. And local still matters, with community loyalty remaining powerful — even in a digital, globally connected world.
When planning for the future, I see three key areas of focus for entrepreneurs to help keep their businesses thriving:
Understanding financial fundamentals. In addition to being aware of what stage the business is in, and therefore what it needs, cash flow, tax planning and smart budgeting are critical. If the business does not yet support hiring an employee to manage these tasks in-house, a CPA firm can help leaders make smart decisions that will guide the business forward.
Preparing for the next 250 years. What keeps a business prospering for many years to come? It’s a combination of timely and ongoing technology adoption, succession planning and workforce development. Technology is wave of the present and the future, and succession planning develops strategies for determining who will take over for the current owner(s) when they retire or die. Workforce development ensures that people employed by a company have the skills and ability to meet its needs as they change moving forward.
Partnering with advisors. Business owners have multiple decisions to make daily, many of which involve knowledge and expertise that are not in their wheelhouse. Tax and financial advisors can help provide the experience needed to navigate uncertainty and make the smartest decisions possible.
As we celebrate America’s Semiquincentennial, may we remember and appreciate all that small-business owners have contributed to our country. And may we continue to support their growth and success for the next 250 years, and beyond.
About the Author:
Chris Smith, CPA, CGMA, is a partner of CB Smith & Associates P.C. He leads a staff of certified public accountants and other tax professionals who offer business and individual services to clients throughout Georgia.
[1] https://www.uschamber.com/small-business/small-business-data-center
