My Zero-In column on Forbes this morning is ‘SaaS-ing’ Back At The Economy. In it, you will see Jim Heeger’s description of the ‘thumbtack’ economy.
There are about 22 to 25 million small businesses in the US. The vast majority of them are mom and pop businesses that do not have employees. Then there are about 5 million “small business employers”. Above small business employers, there are 5.9 million “business employers” in the US, based on W2 filings. Of these 5.9 million, 5.2 million have fewer than 20 employees. The remaining 700,000 entities account for larger business employers. “It is not a pyramid, it is a thumbtack; it is all at the bottom. That is where the action is because there are so many companies to deal with down there,” explains Jim Heeger.
Well, we need to make that 5.2 million sub-20 employee business count number double in the next decade.
This segment is a part in the series : Forbes Column 08