We are near the end of National Small Business Week, a celebration of those businesses that form an important, one might say essential, backbone to the American economy.
According to the latest U.S. Small Business Administration report (with data from 2015), nearly 100,000 small businesses that operate in Rhode Island are classified as small, that is, have fewer than 500 employees. And they employ 224,254 people, slightly more than half of the state’s private workforce.
A breakdown of the employers says a lot about Rhode Island’s labor market, some of it surprising.
For instance, 71.7 percent of those people working in the accommodation and food-services industry are employed by a small business. Construction employment is 92.4 percent for small businesses, while 74.5 percent of the employees in the real estate and rental and leasing sector do the same.
What may be more surprising is that 65.1 percent of people working for a manufacturer do so at a small business. And it certainly is not expected that 51.5 percent, more than half, of those working in the health care and social-assistance sector, the state’s largest employment group, work for a small business.
What does it mean?
For one thing, for these businesses to succeed, they need access to a well-trained workforce, which means that the state’s educational infrastructure must up its game.
But it also means that when the state makes regulations, it should keep in mind their effects on small businesses. Because if it wasn’t clear before, it should be now. If small businesses fail, so does Rhode Island.