Small businesses are important to the U. S. economy because

A) They fill in the gaps when large businesses want to let workers go on vacation or when large businesses want to temporarily cease production.

B) Banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses.

C) They pay most of the tax revenue collected by the U. S. government.

D) They create about 65% of new jobs each year and generate over 50% of the U. S. GDP.

Question

Business

Mattie Vargas

6 April, 17:12

Small businesses are important to the U. S. economy because

A) They fill in the gaps when large businesses want to let workers go on vacation or when large businesses want to temporarily cease production.

B) Banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses.

C) They pay most of the tax revenue collected by the U. S. government.

D) They create about 65% of new jobs each year and generate over 50% of the U. S. GDP.

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Answers (1)

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Nikhil Stevens · Answer 1

D) They create about 65% of new jobs each year and generate over 50% of the U. S. GDP.

Explanation:

Small businesses employ over 99 percent of all the private-sector employees in the US. In figures, they hire over 130 million people. Besides that, 60 to 80 percent of all new jobs created every year come from small businesses.

In revenue generation, Small business makes 54 percent of US sales. They contribute over six trillion-dollars to the economy or 50 percent of the country's GDP