Small businesses are becoming a major driver of the U.S. economic recovery, Shopify President Harley Finkelstein told CNBC on Tuesday.
“What we are seeing is that entrepreneurship is now part of the global recovery story,” he said in a Mad Money interview with Jim Cramer. “Small businesses will take on the responsibility of getting our cities and towns back to where we were before the pandemic.”
Thousands of small businesses have had to temporarily suspend or close their operations due to the Covid-19 pandemic. Many are still struggling to rebound, although the US economy in general continues to recover and the stock market continues to hit record highs.
Finkelstein also announced earlier in the day that Shopify, which hosts online stores and offers retail point-of-sale systems, is preparing to cut commissions on a portion of developer sales. It’s part of the Canadian company’s plan to partially strengthen its customer base by eliminating the 20% cut it requires for the first $ 1 million customers in its marketplace.
“That means if you’ve created an app on Shopify, your first $ 1 million is all yours,” said Finkelstein. “This is really important because we believe in this idea of building a real ecosystem, and we want thousands – and tens of thousands – of developers building on Shopify.”