America at 250: Why Small Businesses Personify the American Dream

As we celebrate America’s 250th birthday, I’ve been reflecting on how small to midsize businesses (SMBs) are the American Dream personified. In America, if you come up with a creative idea, work hard, and treat people well, then you have a fair chance at building a successful company. SMBs are cloaked in the belief in hard work that America was founded upon.

This is a major reason why small to midsize businesses (SMBs) have long been the backbone of the American economy. They make up 99% of all U.S. companies and generate most of the country’s new jobs. Their leaders are uniquely skilled at seeing around corners. They have a real pulse on what’s happening in business — because they are living it every day.

America’s 250th birthday serves as not only a chance to look back at how SMBs have helped drive our country forward but also to look ahead at how they can continue to be a source of innovation and hope.

Here are 4 ways small business leaders can double down on what’s made them successful as the next chapters of America’s business story unfold.

1. Stay Loyal to Local

Most days bring news of large corporations’ latest complex financial transactions. While this type of financial activity may generate profits, it doesn’t usually create jobs.

CEOs of SMBs are hiring local people in the communities they live in and shouldering a lot of the related financial risks. When they create jobs, payroll, taxes, and daily spending circulate in towns, strengthening the communities they serve. SMBs are uniquely positioned to continue to provide stability in towns and cities across the country as they invest in local facilities, develop employees and shape neighborhoods.

2. Chase Innovation

SMBs are the true engines of innovation. In nimble organizations, employees have the freedom to quickly bring new ideas and initiatives to life. That is how better business models, products, and services are born.

There’s no question AI will play an even bigger role in innovation in the future. But the best companies will use it to fuel growth and drive differentiated value rather than just focus on efficiency. AI is particularly exciting for small companies because it levels the playing field and acts as an equalizer, as organizations of all sizes can tap into the same technology.

The world’s best CEOs are experimenting with AI, without losing sight of how technology can amplify what they uniquely do well. They are treating technology as a growth lever, not just a cost cutter.

3. Connect to Purpose

The next generations of people entering the workforce want to work for organizations they believe in and where they feel they can make a meaningful contribution.

SMBs often provide the ability to directly impact results in ways that are more difficult at larger companies. Young people can come into smaller businesses and make real contributions faster while seeing the tangible results of their work.

It creates new opportunities for employees to take on responsibilities outside of their typical day-to-day, grow at faster speeds, and carve out their own career paths.

4. Remain Rooted in Values

Most importantly, the small business leaders who will continue to propel America forward are the ones who don’t lose sight of their values. They continue to champion the traits that have made SMBs such an important part of America’s history, including:

1. Transparency: The most successful business leaders show respect to their team by being open and direct about results. That openness keeps teams aligned, builds trust, and helps teams work together toward solutions.
2. Patience: Small businesses give people room to learn and grow on the job. That patience builds loyalty and long-term capability.
3. Resilience: Leading a small business in America today is not easy and uncomplicated. From tariffs to pandemics, top SMB leaders adapt fast because they have to. They are the motors of the world, and they will fight to keep their communities strong and create jobs regardless of what’s happening in the broader economy.
4. Generosity and Connectedness: These are the superpowers of small businesses. Effective SMB leaders quickly learn the value of staying connected to peers: informal networks and trusted advisors accelerate problem-solving and reduce isolation. This generosity is rooted in the belief that SMBs are in it together.
5. Responsibility: SMB leaders feel a noble purpose and a deep responsibility to their employees and their communities. They understand the impact of so many people counting on them. When they face challenges, they must figure out a way to overcome them because there is no safety net.
6. Care: SMB leaders genuinely care about the people who work for them at the individual level. Creating jobs is about helping people build their dreams.

As America celebrates its 250th birthday, it’s important to also celebrate the people who make it work every single day. The small business owners fighting to keep their communities strong. That’s the American dream.

This story first appeared in Entrepreneur.

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