In the United States, there are 33 million small businesses — by far more than any other sector of business. And though their size may be relatively modest, they’re making a big impact. A recent Good Company survey found that the public holds small businesses in high esteem, and more Americans say that they have a positive effect on their communities than any other institution, including universities and the military.
Regardless of their industry, small businesses tend to have closer relationships with their customers and clients. Moreover, they can pivot faster than larger companies that are bogged down by bureaucracy. This agility allows them to respond quickly to changes in the marketplace and drive innovation.
Entrepreneurs looking to start a small business can benefit from the many government programs that offer financial support for entrepreneurs, from grants to loans. In addition, they can register as a small business with the System for Award Management to become eligible for federal contracts – although qualifying as a small business will require meeting specific industry size standards.
To register as a small business, you must use an Employer Identification Number (EIN). An EIN is a unique number assigned to your business, much like a Social Security number. It’s used to identify your business for tax purposes and to open a bank account. You’ll also need a business license or permit depending on your industry and state, as well as the legal structure of your business (e.g., sole proprietorship, partnership, LLC).