Attracting and retaining business is an important part of any community’s economic makeup. And it’s the little guy that can sometimes provide the greatest benefit for many areas.

Small businesses employ over half of the U.S. private workforce. In many communities, small businesses may employ even a higher percentage.

The stimulus package means jobs for small businesses. The U.S. Council of Economic Advisers projects the stimulus package – as a whole – will create of save about 3.7 million jobs (1.6 million in small and mid-sized businesses). Steve King, of Emergent Research, indicates a significant share of those jobs will take place in areas where growing businesses play a major role.

According to King, the stimulus package provides a number of elements to boost the economy, mostly centered around a modernized infrastructure, a shift to clean energy, an improvement in healthcare, broadened educational opportunities and an expanded use of technology.

At the Knight Center of Digital Excellence, we’re seeing how an “expanded use of technology” – specifically broadband technology – is already laying the groundwork for future economic development in numerous Knight communities. Consider just a few of the previous articles we’ve reported on: wireless networks taking off in Akron, Ohio; advances in Smart Grid technology in Miami; the use of ePrescribing and telemedicine applications in numerous states, IT workforce development programs in Lexington, Ky.

Broadband Internet is playing a crucial role in all areas outlined as crucial elements in getting our nation’s economy back on track. Keep in mind these programs not only lay the foundation for economic success for existing businesses, but for entrepreneurs as well.

Consider what the Internet has allowed many to accomplish already. Some 20,000 small businesses now operate on the Internet, 120,000 individuals are primarily employed as eBay sellers and 500,000 individuals have part-time businesses on eBay. In addition, there are several examples of Internet companies that have risen to prominence within the last 10 years to become major employers. Amazon, Cisco Systems, Symantec, Google and eBay collectively employ 75,000 people. All in all, consumer e-commerce comprises about 10 percent of all U.S. retailing.

Communities that can offer expanded broadband technology better position themselves to not only attract and retain existing business, but allow small ones to grow and thrive. And thriving local business means a more solid tax base and greater economic freedom.

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