August 21 is the day, World Entrepreneurs Day (https://www.sabcnews.com/sabcnews/world-entrepreneurs-day/), around the globe for recognition and gratitude for the entrepreneurs who provide valued products & services, create employment, generate taxes for social services, and generally make our lives better in their communities.   The following are a few statistics to consider related to this valuable component of the United States economy:

1. The small business community employs nearly 62 million individuals, just under half of all employment in America (Small Business Statistics Of 2023 – Forbes Advisor), offering people the ability to work in positive, family run company environments close to their residences, where their children go to school, and serving their local friends, neighbors, and residents of the relevant municipality and county. This does not incorporate the fact that of the over 33 million small businesses in the United State in excess of 80% do not have any employees, translating into over 25 million additional positions generating income while providing men & women from all demographic groups with the opportunity to execute their visions and do what they are passionate about as an occupation.
2. As most U.S. citizens are aware, America has been aggressively accumulating national debt for many years under both political parties’ stewardship. That debt, which if allocated per citizen is approximately $100,000 per person, is quickly approaching $33 trillion in total (National Debt Clock: What Is the National Debt Right Now? (pgpf.org)).  It is an issue that I hope Congress will address, so we as a nation can start to get back on sound financial footing rather than passing on the liability to future generations. The good news is that the entrepreneurial community is doing their part to create jobs, increase the size & diversity of the economy, and pay the taxes necessary to fund government and social safety net programs.  Did you know that the neighborhood restaurants, retail shops, construction companies, franchised business models, auto repair facilities, and other business models as diverse as the people that make up our melting pot nation pay taxes that make up approximately 44% of the national Gross National Product (GDP) (https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/winning-the-smb-tech-market-in-a-challenging-economy).  The GDP of the United States in 2022 was approximately $25.5 trillion (Gross Domestic Product, Fourth Quarter and Year 2022 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA) That means over $11 trillion was collected from the small and medium business entrepreneurial community. The next time you drive on an interstate highway, hear of someone who received a Pell grant or other educational assistance, or see a proud member of our military, thank the entrepreneurs who took the risk to open and manage businesses in this country for doing the heavy lifting to pay for those items.
3. Social Security and Medicare are funded for our nation’s elderly through individual and company contributions out of each paycheck. As conveyed previously, almost 90 million people work for or in small or medium businesses in the United States.   Each of these individuals contributes to this wonderful societal support system that allows our citizens to age with dignity and in comfort.  Unfortunately, the system is no longer generating enough money to long-term support our elderly without modification. https://www.npr.org/2023/03/31/1167378958/social-security-medicare-entitlement-programs-budget  The least burdensome way to address this shortfall of incoming cash, as no employee wants Uncle Sam to take a bigger cut out of their paycheck, is to grow the economy creating more employment contributing monthly payments to the program.  The best way to do that is through economic policies that encourage entrepreneurship. Fifty years ago, the Pacific Northwest did not have Microsoft, Amazon, Costco, Starbucks, or Nike.  Today, the seeds planted decades ago have grown into strong trees offering good employment opportunities and generating taxes.  It would be wise to look at the federal and state economic policies that were in place when those companies were born and try to recreate that economic environment for today’s entrepreneurs to reseed our regional forest.

The most valuable asset for most businesses is the people who work there.  The entrepreneurs who recognize that fact and create a corporate culture that rewards and recognizes achievement by their personnel are destined for long-term success.  I am blessed to have had almost thirty years of personal success as a M&A intermediary and entrepreneur, however, I can tell you that IBA would not be the largest and oldest business brokerage firm in the Pacific Northwest without the contributions made by each member of our team. Two weeks from today, on September 4, the nation will observe Labor Day.  I am proud to note that Oregon was the first state in the nation to recognize Labor Day, on February 21, 1887, over seven years before Labor Day was made a national holiday by Congress on June 28, 1894. History of Labor Day | U.S. Department of Labor (dol.gov)  It is wonderful to be an entrepreneur in a region that led the United States in recognizing the value of the people who work.

I will add that I want to personally recognize the “shoulder to the grindstone” effort made by the job creators or entrepreneurs this Labor Day.   It has been my experience no group of people works longer, harder, and without focus on short-term compensation.  This recognition brings to mind two past clients, Corbet & Joanne Richter, who owned & managed the Alpine Blossom, a combination floral & gift shop, for many years.  I recall a conversation with Joanne when I was selling the business where she told me she had not had time to put a Christmas tree up and decorate her house, celebrate Valentine’s Day in style with the man she loved, or be celebrated on Mother’s Day by her kids in a less than exhausted state for many years and looked forward to those days eagerly after the sale.  This is symbolic of the sentiment of many successful entrepreneurs IBA has helped retire or give a well-deserved respite before starting their next business, as a component of our over 4200 completed transactions since 1975, as the business owner is often the first to start the day and last to go home, the one who takes the weekend shift when no one else is available, and who will be working directly with customers or administratively on many national holidays.  I encourage everyone whether they work for someone else or own a business, to take some time off Labor Day weekend.  You have earned it.

IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, legal, and accounting communities on subjects relevant to the purchase & sale of privately held companies and family-owned businesses.  IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.