Small Business Survives
When we think of "retailing" we usually think of the likes of Wal-Mart, Sears, Best Buy, Circuit City, department stores or other national chains. But the "Challenges of the Future" report recently published by the National Retail Federation Foundation and the Illinois Retail Merchants Association reminds us that American business is still fueled by small business entrepreneurship.
According to the study, 90 percent of American businesses employ less than 20 people. Small business is an important economic driver producing 40 percent of the GDP and two-thirds of the new jobs created in the past 25 years. Nearly 95 percent of all retailers boast a single storefront, and 90 percent have annual sales under $2.5 million. Ninety-eight percent employ fewer than 100 in their stores.
The Challenges report identified a number of trends driving retail change today. The report also detailed some of the challenges that smaller retailers might have in managing these trends.