Finance 101
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In summary, of the nearly 26 million firms in the United States, most are very small-97.5 percent of employer and non-employer firms have fewer than 20 employees. Yet cumulatively, these firms account for half of our non-farm real gross domestic product, and they have generated 60 to 80 percent of the net new jobs over the past decade. Entrepreneurs rightly command enormous respect, and their contributions to the U.S. economy are followed by academics and policymakers alike.
Fortunately, small business owners, many of whom are too busy running their businesses to ponder their own importance to the macroeconomy, continue to provide the vitality needed to spur new innovation and continued economic expansion for years to come.
Chad Moutray
Chief Economist & Director
Of Economic Research |
Why would you need training in finance?
Mr. Moutray and his team reported 671 thousand new businesses started in 2005, but there were 544 thousand that closed their doors. Google reasons for business failure and at the top of the list you will find poor management and financial constraints. On the SBA website, they will quote a more detailed list that identifies at least five reasons in the area of finance:
- It really comes down to knowing your numbers-being able to assess your performance and take effective action.
- Finance 101 is all about taking effective action with financial tools and practices so you can get comfortable with your numbers and manage your business.
