It is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy. In America eight out of ten small businesses fail in just their first year. Competition and lack of financing are two huge factors that lead to businesses failing. In 2009 more and more workers started to leave their more secure jobs to start their own business and become entrepreneurs. (Hannon 68) Over six hundred thousand small businesses were started, but that number means nothing if eighty percent of them (480,000) were doomed to fail in only twelve short months. (68) Even though small businesses are a huge factor to boosting the economy in times of economic downfall, with their creation of decent paying jobs, the thought of them receiving help is often times pushed to the side. (Leonard 18) The success of ones’ business most times depends on the owners marketing abilities. (Arensmeyer 5) More importantly their ability to avoid making false claims, for that in the business world, is one of the quickest ways to get sued. (5) Managing a business can be very stressful especially being that most times one would be making decisions that could lift or drive their business straight into the ground. (Arensmeyer 3) One of the most important th... ... middle of paper ... .... Works Cited Arensmeyer, John. "Small Business Matters." http://www.smallbusinessmajority.org. 23 Jan. 2014. Bagley, Rebecca. "Innovate, Grow, Succeed: Staying Competitive In Today's Economy." http://www.forbes.com. 18 Mar. 2013. Careers In Focus: Financial Services. New York: Ferguson, 2006. Demuth, Erin. “Small businesses draw buyers in with popular merchandise.” The Post Star. 28 Nov 2006 Hannon, Kerry. “Kick-starting a business of your own.” U.S. News and World Report. Mar 2010. p. 68-70 Leonard , Jeffrey. "Do Small Business A Simple Favor." Washington Monthly Jan. 2011: 18-19. Nucifora, Alf. “Small businesses utilize point-of-purchase advertising.” Business Journal Serving Fresno & the Central San Joaquin Valley. 19 Jul 1999. p. 2-4 Panissidi, Paula. “Developing a Marketing Plan.” www.sba.gov Scott, Alex. Personal Interview.14 Feb 2014.
This book is important to business students because it shows that even the most seasoned executive runs into unexpected challenges and can find themselves in uncharted territory. Jim Barton’s experiences and lessons can be lessons for anyone. Any employee, whether they are support staff or a top executive, should always maintain an open mind and be ready to learn from a situation or the people around them at any time.
According to the U.S. Census Bureau, nearly forty-seven percent of all businesses employ fewer than ten employees. Small business is a vitally imperative to our nation’s well-being. Small business is responsible for creating the majority of our new jobs, employing nearly half of the American’s private workforce, and providing half of our country’s private non-farm gross domestic product (SBA 2009). Regardless of your politics, since President Barack Obama took office in 2008, an immense degree of emphasis has been placed on small business. Some of the emphasis has been positive while other parts have been negative.
Business growth general is assumed to be good; bigger is assumed to be better (Hess, 2011), but if the proper planning is not in place it can lead to a business failure. Beginning a business based on something she loved, and needed in her life Susan Feller made the brave decision to build a successful business by baking and selling gluten-free cakes and desserts. After her retirement she focused on her dream and solving her own issue, finding food safe and healthy to eat for those, like herself, with Celiac disease and gluten allergies, but they also had to be delicious. Feller had some tough decisions to make as a small business owner, would she be able to keep up with the demand, how can she grow her business and what if she decided she had had enough and wanted to close the business? These are all decisions any business owner have to face at one point or another.
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
American society has always been optimistic towards their future. The American nation is a capitalistic country. Many individuals are influenced to start up their own businesses with their own ideas. The government helps and regulates all business. There are three types of businesses sole proprietorships, partnerships and corporations. A sole proprietorship would be my best choice to start up my own business. This form of business is the easiest to start. In the states a federal license or permit is needed to sell products or serve a service to the public. A license is required in order to begin the business operation. Income or loss the owner is accounted for on the tax return. “Flow thru taxation” is the term used to state that the owner’s incomes flows through the tax return. I would keep contact daily with my accountant. The business would not be taxed twice as there would be in corporations. It is simply taxed once. I would not need contracts stating two people joining in and making an effort to make a business work as there would be in partnerships. I would just rely on myself. I have better confidence of trusting myself than trusting others in forming a partnership. It is a gamble and a risk to be liable for the entire business. Life is pretty short and taking a risk would either mean it was worth it or you learn from it.
Katz, J. A., & Green, R. P. (2014). Entrepreneurial small business (4th ed.). New York, NY: McGraw-Hill/Irwin.
There are over 28 million small locally owned businesses in the United States and 70 % of these businesses are owned and operated by a single person. Owning a small business is not an easy task it takes hard work and dedication, Steve Jobs once said “you need a lot of passion for what you’re doing because it’s so hard”, people don’t realize
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so. If it was easy, everybody would have some type of business growing in this world
A small business can be defined as a legal entity consisting of very few employees. Establishing a business such as a proprietorship is the least complicated among business structures. Proprietorships also have a major advantage over other business structures with regards to filing taxes. Profits generated by the business are taxed at individual tax rates thus avoiding the double taxation incurred by corporations. Local economies, government offices, schools and the unemployed benefit greatly from the growth stimulated by these companies. The taxes collected from small businesses and job creation makes small business a vital part of the community.
"What are the barrier to entry, inhibitors to growth, and detriments to the health of small business and entrepreneurship today?"
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics.
Managerial decisions are an important component in achieving the objectives of the organization. The success or failure of a business depend upon the decisions made by managers (Jurina, 2011). Today’s increasing complexity in the world of business brought forth greater challenges for both the firm and its managers. The rapid rate of technological and digital advance as well as greater focus product innovation and processes that influence marketing and sales techniques have contributed to the increasing complexity in the business environment.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Starting a small business is often one of the hardest things a person can do. Some people start a business out of pure fascination, or even as a hobby. Whether starting a business for personal reasons or simply the grandeur to make loads of money, everybody needs to have a plan. Starting a small business is no easy task and can take days if not months to prepare. The most important aspect to have is the tempura and heart to start a small business, as without passion, no business can succeed. One has to be his or her own boss, make dream, reality and be willing to market and sell a product. It takes a lot of discipline, long hours and hard work, something many do not have. However with the right willingness, passion and dedication a business can be the start of something big.