Why it Matters

The success of small businesses directly affects economic churn and growth of the state’s entire economy, fostering innovation and providing pathways to opportunity for workers and employers alike. Strategic resources and partnerships are integral to ensure our small business climate remains strong for years to come.
 
The Research

Georgia small businesses employ over 42% of all employees in the state.¹ Over the past five years, small businesses have increased employment by 15,000 and generated $10 billion in sales, which has generally outpaced national averages for small business employment growth². In the midst of economic uncertainty from March of 2021 to 2022, small businesses in Georgia contributed over 68% of the net increase in employment².

While this is a product of significant entrepreneurial and innovative opportunity, these small businesses have acted resiliently to challenges including increased costs, changes in financial resource availability, and competition for talent. Nationally, applications for pandemic-related assistance may have declined, but applications for more traditional loans or lines of credit increased from 21% in 2021 to over 40% in 2022³. Uneven cash flow and increased operating costs continue to drive the overall need for financial assistance².  

To learn more about the opportunities and challenges driving this issue, we encourage you to read our newly released quarterly report, The Future of Small Business. 

Why it Matters to Your Business

Small businesses are ingrained in Georgia’s ecosystem, from logistics supplies to downtown locals, and provide a wide range of entrepreneurial and employment opportunities that are crucial in maintaining healthy economic churn and innovation for the total state economy.

What You Can Do  

• Expand knowledge on achieving success in small business by supporting resources offered around the state such as The University of Georgia’s Small Business Development Center. 

• Partner with your local small businesses and look for ways to incorporate them into larger business networks and supply chains.  

What Georgia Can Do  

• Invest in programs which provide support and resources to small businesses in Georgia.

• Support a business climate which appropriately aids small business growth and entrepreneurship. 

The Big Picture  

Georgia is committed to maintaining the reputation as the number one state to do business and small business success is integral to that goal. The continued opportunities around employment and sales generation should make Georgia attractive to future entrepreneurs.