Concerns for small businesses Within a business atmosphere there are many concerns. Yet for small businesses those concerns can double. Most concerns that face many small businesses today are attracting customers, economy challenges, government regulations, and hiring and employee retention. Many small business owners have mentioned they have less control over many of the factors (Riffkin, Newport, & McMurray, 2014). According to Todd McCracken, President of the National Small Business Association, “lawmakers are still haggling over what is called the fiscal cliff, which is the combination of billions of dollars in tax increases and budget cuts.” Also he mentioned that “even if congress reaches an agreement, small business owners will not have the certainty they need (Rosenberg, 2012).” With the economy expected to grow, small businesses must try and slow down and rationalize. “The most important tax provision for small businesses, known as the Section 179 deduction, will shrink to 25,000 dollars in 2013 from the 125,000 dollars in 2012 (Rosenberg, 2012).“These deductions affect the overall equipment purchases a business can make. This is causing small business to have to rationalize their spending, due to the Section 179 deduction. Another concern for many small business owners is hiring skilled workers. “Many owners who are looking to hire find it hard to find workers to fill some positions (Rosenberg, 2012).” In today’s society it is hard to find skilled workers in a certain areas with high technical skills. Along with this the technology is changing every day, finding someone who can quickly learn new technology is hard to find. “There are many colleges around the country that offer courses that will help fill many of the... ... middle of paper ... ... all these challenges and issues you build an effective and efficient business that is willing to get through any challenge presented. Works Cited Riffkin, R., Newport, F., & McMurray, C. (2014, Feburary 28). Small Businesses Face Operational, Regulatory Challenges. Retrieved from Gallup Economy: http://www.gallup.com/poll/167660/small-businesses-face-operational-regulatory-challenges.aspx Rosenberg, J. M. (2012, December 27). 5 Issues Facing Small Businesses in 2013. Retrieved from NBCNEWS Business/Economy: http://www.nbcnews.com/business/economy/5-issues-facing-small-businesses-2013-f1C7660251 Spiro, J. (2010, April 7). How to Improve Employee Retention. Retrieved from Inc.: http://www.inc.com/guides/2010/04/employee-retention.html Sugars, B. (n.d.). The Fastest Way to Find New Customers. Retrieved from Entrepreneur.: http://www.entrepreneur.com/article/185880
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.
As with many small business owners they vision of their business usually only extends to their own abilities. They are driven and full of determination and believe their abilities will be able to sustain the business to success. Unfortunately, many small businesses lack the knowledge to be able to effectively be owners’ and leader’ to their organizations.
The second challenges to start up business are the form of ownership to choose. According
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.
In the article, "Strategies for Enhancing Small-Business Owners' Success" by Susan Turner and Al Endres, it is claimed that there is no specific reason as to why small businesses are failing in today's America. They believe, however that two factors can cause the demise of small businesses. These factors are small business financing and the marketing plans associated with those businesses. Small business owners are finding it increasingly hard to acquire funds to start up and help maintain a foothold in the business world. The authors state that this is due to the rising risks of propositions for investors and acknowledge that small businesses have to resort to using their own resources such as their own funds and bootstrap financing. 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.
Katz, J. A., & Green, R. P. (2014). Entrepreneurial small business (4th ed.). New York, NY: McGraw-Hill/Irwin.
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 the 21st century, small and large, private and public businesses are all aiming towards economic growth. The small business marketplace is extremely dynamic and the changes are fast. Here are some facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses. In 2008, there were 627,200 new businesses that started, 596,600 businesses that were closed and 43,546 companies that filed for bankruptcy. According to business experts, of all the small business startups, one-third of them are profitable and successful, a third of them just about break-even and the rest of them are down with negative earnings Some buyer’s develops as independent business owners, while others are more likely to prosper as franchise owners. According to a recent report by the Small Business Administration (2007), the United States had approximately 26.8 million small business firms in 2006. In fact, as recently reported by Moutray (2006), most firms in the U.S., are very small and account for about half of the country's non-farm real GDP. Over the past decade small business has generated 60–80% of new jobs annually. In reality, there are easy answers to the independent business versus franchise dilemma. Although, a franchise system offers benefits to owners such as brand recognition, to inc...
Unfortunately, many small businesses fail or do not reach their full potential because the small business owner spends too much time working in the business, and too little time working on the business.
In the “War for Talent” where technological change has created a demand for new jobs that require specialised technological knowledge that many workers don’t have; having positions going unfilled is expensive (PNC, 2015). A Career Builder survey found that in the United States having a position unfilled for three months or more costs a company on average around fourteen thousand dollars (PNC, 2015). According to Chamber of Comerce and industry Queensland (n.d.) the primary impediment to business expansion has been a shortage of employees possessing the requisite qualifications and
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
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.
Shaw, E. (1997), “The real networks of small firms”, in Deakins, D., Jennings, P. and Mason, C, (Eds), Small Firms: Entrepreneurship in the Nineties, Paul Chapman Publishing, London.