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Weaknesses of small businesses
Macro economy affect business
Employee retention theory and constructs
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Abstract
Small businesses face economic uncertainty, overwhelming legislative regulations, and employee retention problems. Small Business represents more than 99 % of all employers and employs more than one half of the private sector. It also generates one half of the United States private G.D.P. ( PR Newswire, Oct 29, 2014 pNA).
In light of the significance of small business to the economy, it should be a grave concern when a third of small business owners rate the overall health of the United States economy as their biggest worry, rating higher than terrorism, the war on Iraq or healthcare costs. ( PR Newswire, July 12, 2014 pNA). Normally, during periods of economic sluggishness, it is small business that paves the way for a rebound. However, this trend has not appeared during the recent down turn in the economy which began in 2001. A major reason for small business failure to bolster the economy is a result of their inability to raise capital due to the decimation of the Small Business Administration's loans program ( Harpers Magazine, July 2014, V309 il 850 p79(2)). It appears that the very fuel that normally would stoke the economic furnace has been diluted through cost cutting measure as a result of a floundering economy. Such challenges will test the creativity and viability of small business.
Unfortunately, that creativity can be overwhelmed with the legislative regulations imposed by the local, state and...
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Policy makers wield huge influence when it comes to intervention in new firm creation and growth. Policy makers often put into place macro economic policies that seek to overcome attitudinal, resource, operational and strategic barriers to the formation of new firms. (Storey 1994) New firms represent a large portion of the new jobs created each year and therefore politicians are incentivized to make sure new firms are formed. In the past 17 years 63 percent of new jobs have come from small businesses in the United States. (SBA Office of Advocacy 2009) New firms are often closed within 5 years with only a third surviv...
As a means to assist small businesses during the recession, the current US administration proposed to increase the loan size cap for standard CDC/504 and 7(a) loans to $5 million. A similar proposal ...
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.
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
you take on a workforce and you then decide to shut up shop you will
Eight out of ten small businesses fail within the first eighteen months, that is the cruel fate of many small businesses opening in Pennsylvania, let aloneAmerica. Small businesses are the the number one source of jobs in Pennsylvania, yet everyday people choose against them, they shop primarily at the big box stores and forget about the small businesses around them that got everything started. The people of North East Pennsylvania (NEPA) often tend to be closed minded to new ideas and long term benefits. Ever since the economic recession in 2008, small businesses have struggled to compete with the lower prices that large chain stores offer like, Wal-Mart and Target for example.
Accessed 13 April 2015 from http://www.effectuation.org/sites/default/files/documents/what-makes-entrepreneurs-entrepreneurial-sarasvathy.pdf 6. Summit Consulting. SBA, US Small Business Administration. Toward Effective Education of Innovative Entrepreneurs in Small Business: Initial Results from a Survey of College Students and Graduates, September 2009. Accessed 13 April 2014 from https://www.sba.gov/sites/default/files/advocacy/rs353tot.pdf 7.
"Real Statistics Show That 70 Percent of Small Businesses Succeed At First." Real Statistics Show That 70 Percent of Small Businesses Succeed At First. N.p., n.d. Web. 21 Feb. 2014
Some people do not like the way some businesses are ran and would like to change them. Others do not like to be employees for certain employers because of how the business works. There are many pros and cons to owning and running a business and making the choices in how to do things in the business. What some people do not know are the many benefits to owning a business instead of just being an employee.
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Today large companies are downsizing and reengineering with much more frequency, and it would appear that the trend has become one of people starting their own business. An interesting statistic stated that in the United States a new small business is started every 11 seconds; (of course many do fail, but they are started all the same). (Sullivan) We must also keep in mind that starting a business and being self-employed are not always one in the same-as this paper will examine in more detail. People can be, and often are, simultaneously owners, self-employed producers, and capitalists.
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.
Many people dream of becoming entrepreneurs someday. But it made me realize that there other factors that needs to be taken into consideration. We need to ask ourselves are we ready to take the challenge to the outside world. Not everyone have the vision, innovation and creativity to become an entrepreneur. The individual must have a positive attitude and accept the responsibility, have discipline to meet their goals, and take action when the opportunity presents itself. Many prefer a job security and rely on a weekly paycheck, while entrepreneurs will take risks and doesn 't have that luxury to know the amount of their income.
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.
According to Victorino Abrugar (2013) Small businesses in the Philippines can be defined according to the size of assets, size of equity capital, and number of employees. The Magna Carta for Micro, Small and Medium Enterprises defines a small business as any enterprise or business activity engaged in the major sectors of the economy ( industry, trade, services, practice of profession, operation of tourism-related establishments and agri-business) whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, are ranging from more than P3,000,000