Main Street is a term that is often used to refer to small business in the United States. The small businesses that make up the concept of Main Street are important to the larger financial centers of the United States because without the little guy, so to speak, the big guys would not be as successful and the economy as a whole would suffer. The businesses that make up Main Street are important cornerstones to the American economy and consistently serve to influence the bigger industries on Wall Street.

Definition

Small businesses are usually considered to be privately owned. They typically have less than 100 employees. Some examples of business that usually fall into the small business category are barber shops, repair shops, restaurants, and small manufacturing companies. The idea of Main Street and small business is a concept that is found around the world, but is called different things in different countries. In Canada, Main Street still refers to small business but the contrasting term is called Bay Street rather than Wall Street. China uses the terms Ching Kai or Tai Kai to refer to the concept of small business, while the United Kingdom uses the term High Street in place of Main Street. Despite the different terms and countries, the idea that there is a separation of big business and small business remains constant.

Main Street Economy

There are only a handful of exceptionally large financial centers in the United States. However, there are hundreds of thousands of small towns that dot the landscape of America. Each of these towns has a financial center that is just as important as Wall Street, if not more important to that particular town. Ironically, most of small town America actually has a Main Street on which the majority of local businesses are located.

This is where the idea first originated as a means to refer to all of small business, as a whole. The small economies of the Main Street towns continue to be a driving force in the American economy. While small businesses are significant consumers of the products produced by big business, there are many that also provide the products that are sold by big business. With the interrelated nature of small and big business, it is easy to see why these small business Main Streets of the United States are a large part of what allows the grander financial centers to flourish.