It seems as though you can’t turn on the television or pick up a magazine without coming across a politician or pundit extolling the virtues of small business and the role it plays in the U.S. economy. It’s easy to see why small business is such a popular topic of conversation. As of today there are about 27 million small businesses in the U.S., 6 million of which actually have employees. These businesses account for over 50% of total U.S. GDP and 75% of the net new jobs in the U.S.
It’s clearly a big deal, but I for one, think that this renewed focus on small business is only the beginning. There is strong evidence to suggest that we’re witnessing the beginning of a major social and economic shift. As a result, I’ve become convinced that while the 20th century was dominated by the Fortune 500, the 21st century belongs to the Fortune 5 Million.
There are three key drivers of this shift.
1. Structural changes in the economy
2. Increasing interest in niche products
3. Ever lowering