Small businesses struggle in downturn
Although the fate of certain large industries such as banking and automotive has drawn much attention over the course of the recession so far, about half of all private sector employees in the nation work for small businesses, according the U.S. Small Business Administration.
Small businesses, in this case defined as having fewer than 500 employees, pay nearly 45 percent of the total U.S. private payroll.
In 2006, South Carolina’s 81,698 small businesses were 97.3 percent of the state’s employers, and they employed 50 percent of all private-sector workers, according to SBA data.
Between 2004 and 2005, small businesses created 53.2 percent of the state’s net new jobs.
So how are they faring in the current economy?
Scott Whelchel, Greenville area manager for the Clemson Small Business Development Center, said, “The retail sector appears to be hit the hardest, the restaurants, the gift shops.”
He characterized local Mom-and-Pop businesses generally as “surviving,” though “it’s definitely tougher than last year.”
