Your small business accounting in Toronto may not earn as much as a large corporation. However, like all small businesses, it contributes significantly to the local economy. It is a vital component of that economy. It provides opportunities for employment. It is a critical building block to large corporations in Canada.
What makes your small business accounting “small?”
A small business can be a proprietorship, a limited liability company, or a corporation. It typically employs no more than 500 people.
In spite of the size, small businesses correspond to 99% of firms that provide employment. Since the mid-1990s, 64% of new jobs have been attributed to small businesses. A hefty 44% of the total private payroll in the USA comes from small businesses.
A business, no matter how small, has its rightful place in the community. It helps both the local economy and the community in various ways.
What are the significant contributions of a small business?
Economic Growth
A small business makes local economies strong by contributing to the community’s growth and development. It provides employment opportunities and thus fuels economic growth. It stimulates the creation of new products. It inspires the advancement of creative solutions. It addresses the needs of large corporations which outsource some of their business functions.
Flexibility
A small business in Canada adapts swiftly to changes in the economic climate. It tends to be strongly customer-oriented. Local customers typically patronize their favorite small businesses even during an economic crisis. Because of this, a small business manages to stay afloat and survive tough times.
Helping the Community
When a customer patronizes a small business, he fundamentally contributes money to the local community. A flourishing local small business generates income. The more money it makes, the higher taxes it pays. Local taxes go towards funding organizations which provide service to the community like schools, fire departments, and the local police.
Future Growth
A small business has great potential to grow big. Ben and Jerry’s and Nike are major players in both the national and the international business scene. Both began as small businesses. Many leading players in the computer industry started off tinkering with machines which they manually assembled in their garages. Microsoft demonstrates beautifully how a seemingly small idea can revolutionize the world.
When a small business accounting thrives and grows big, it usually remains in the very same community where it was established. It continues to provide steady employment to people in the community, and continues to help the local community grow and prosper.
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