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Small and medium-sized businesses are essential to fueling the economy and creating good jobs. Her 33.2 million small businesses in the US make up more than 99% of all US businesses and employ just under 47% of private sector employees.
However, small and medium businesses have been hit hard by the pandemic, now citing inflation, labor shortages and supply chain issues as: Main issueLarge companies have a role to play in keeping small businesses viable and can help small businesses grow and thrive.
Here are five things large businesses can do now to help small businesses reach their full potential.
1. Speed up payment processing.
Paying your small business bills quickly can help you increase profitability, hire more employees, and grow faster. 2016 study has shown that paying companies just 15 days earlier can have a significant impact on their growth.
In 2011, QuickPay reforms reduced payment terms from 30 days to 15 days for some US small business contractors. The study found that, on average, every dollar of accelerated payment increases salaries by almost 10 cents. Overall, new policies that accelerated payments of $64 billion increased his annual salary by $6 billion and created more than 75,000 jobs for him in his three years after the reform.
2. Include small business suppliers in your business.
Suppliers are essential to almost every business.A large customer of a small company is likely to get more attention, better service and reliability than if they were a small customer of a large supplier. Order splitting Between two small companies to ensure backup.
This is a strategy that works for big companies like Boeing and Coca-Cola.Boeing Suppliers Like Women Owned wildwood electronics Headquartered in Madison, Alabama.
Coca-Cola uses almost all diverse networks. 70 independent bottlers It works as a coordinated yet diverse supplier system.
3. Partner with small businesses on federal, state, and local contracts.
The federal government is the world’s largest consumer of goods and services, spending about $600 billion each year. The recently passed bipartisan infrastructure law will give state and local governments hundreds of billions of dollars to rebuild their communities in the next few years.
Brian Butler, CEO of Vistra Communications and president of the Tampa Bay Chamber, said big companies should consider helping smaller companies tap into infrastructure investment opportunities.
Over $110 billion announced Heading to state and local governments, over 4,300 specific projects have been identified for funding.
4. Help small businesses adapt to technology.
Recent report From the U.S. Chamber of Commerce’s Center for Technology Engagement, America’s largest tech company shows how it’s leveling the playing field for small businesses. Social media accounts, accounting software, POS tools, and productivity tools have all made it easier for small businesses to grow their customer base and increase efficiency.
The technology industry can now lead the way in driving adoption of technology platforms.Small businesses plan to continue increasing their investment in technology use across their businesses in the next two to three years. .
5. Participate in mentoring programs.
It takes years to gain the business experience to run a successful company. New small business owners often have the grit and ingenuity to build great companies, but they may lack the necessary experience to grow them reliably. Large company leaders can act as mentors to guide small businesses through formal and informal partnerships and programs.
For example, NASA’s Mentor-Protégé Program gives small businesses the opportunity to participate in NASA’s master contracts and subcontracts. While they get expertise from big companies, America’s space program benefits from the innovation and cutting-edge creativity of smaller companies.
To learn how the US Chamber of Commerce Small Business Advocacy works, visit uschamber.com/sb.
About the author
Lindsay Cates
Manager, Communications and Strategy, U.S. Chamber of Commerce
Lindsay is the communications and strategy team manager. She previously worked as a writer and editor for US News and World Report.
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