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Small Business Case Study

explanatory Essay
1783 words
1783 words
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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 …show more content…

In this essay, the author

  • Opines that small businesses should be supported if they want a community to survive and protect their economy.
  • Explains that americans have visualized small business as an equalizing force creating social mobility, economic opportunity, and personal freedom.
  • Explains that small business dominates anywhere that scale economies or administrative offer few advantages. retail, service, and the professions in particular are smaller business strongholds since personal service and individual reputation of the seller are more important factors to success.
  • Explains that small businesses created a tight-knit culture and filled the gaps left in the market that couldn't be filled by large businesses.
  • Explains that when spending money at a large corporation in your local economy, the return rate is much less noticeable than if you spent the same amount.
  • Explains that small businesses impact the global economy more than large businesses. supporting local businesses can create a roaring economy and allow for economic stability and growth throughout the nation.
  • Opines that it is not easy to open a small business of your own. there are more risks involved, such as the government's validity, minimum wage, and banks' rejection of small businesses.
  • Explains that small businesses adapt quickly when they find their niche in the community. small businesses have employed more than half of all private-sector employees and generated 60 to 80 percent of new jobs.
  • Explains that small businesses are important to local and global economies. they provide most of the job force, create the most revenue, and adapt quickly to help aid the company and area financially as needed.

To adapt quickly is when small businesses begin to hire new employees and of the most recent five years they have been adapting rapidly. “in fact, in recent years, small businesses have employed more than half of all private-sector employees and generated 60 to 80 percent of new jobs. Small firms have produced thirteen to fourteen more times more patents per employee than large firms and generated more than half of the annual growth domestic product” (Sered, Fernandopulle 115). Smaller firms can grow faster due to this rapid adaptability and continue to grow faster than larger firms. It takes a while for a larger firm to try and change its approach because it has to cancel all marketing schemes worldwide and that could cost more money than it would bring in, with small businesses it would not take much to adapt the outlook of your business to fit what is working financially. “Smaller firms are found to grow faster than their larger counterparts. Differences in investment and research and development outlays explain the superior job creation performance by smaller firms” (Zoltan 41). Small businesses have a greater rate of adaptability and it is because of how the financing is setup and how quickly they can hire new

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