Advantages And Disadvantages Of Small Business

Many people want to live the “American Dream”, and what better way to do that than to start a small business. Small businesses are incredibly important to the United States economy. Small businesses have been around from the beginning of the history of the U.S. and remain a large portion of the business community today. Small businesses are the driving force for job creation. Small businesses struggle to meet regulations set in place by the government and at the same time stay afloat in the U.S. economy. There are strict size standards set in place that make small business owners weary of expanding the amount of people they employ. Small business owners also struggle with offering healthcare to their employees. Small businesses try to stay ahead by introducing new and unique products. In an ever-changing economy, it is important to understand the impact of small businesses in the United States.

A factor that contributes immensely to the success of an economy as a whole is diversity. An organization that can effectively unite individuals from different cultures and backgrounds can expect healthy growth in the future. However, diversity can be considered to a much greater extent. When analyzing any economy, one can observe that is formed by large firms, medium sized firms, small firms, and firms that are barely getting on their feet. No matter the size or type of business, they all significantly contribute to the overall well being of any economy. Furthermore, one type of institution that forms a considerable facet of the diversity of economies are entrepreneurs. Entrepreneurship describes any institution that begins without the support of any higher corporation or established business. Any individual can study how an entrepreneur works and makes decisions in an economics class or they can even major in entrepreneurship in some universities. However, these educational institutions many times fail to inculcate in their students how these types of business actually operate in the real world. With that in mind, a concise yet profound analysis of a small business in Buckeye, Arizona will consider how an entrepreneur owned business truly works.

Numerous large businesses that are operating today were once started as small businesses. A new business is established to create a good or service that no other businesses have ever created or simply a product of higher quality than existing products, with the purpose of meeting customers’ needs and earning profits. Due to the technological advances at the present time, starting and operating a new business is less laborious. Nevertheless, would-be entrepreneurs should be familiar with the proper approaches to start their businesses.

Millions of Americans dream of starting their own small business; a prospect as exciting as it is frightening. Failure rates among small businesses are extremely high, though the thrill of big rewards vs. big risks continues to attract an increasing number of entrepreneurs each year.

(Business Management: a contemporary compilation). The Growing interest in the area of Entrepreneurship has developed in changing roles of small businesses. Small Entrepreneurship has great potential in developing countries. Due to Statistics and analysis of several countries, it is shown that Small Industries have grown faster than large industries. Large Industries lost jobs as Small Industries created workplaces. The Focus is on Small Industries which led to the main source of employment in the country.

An entrepreneur is “a person who organizes and manages a business with considerable initiative and risk”. In other definitions an entrepreneur “identifies an opportunity or a gap in a market and evaluates the risk related to the establishment of the business and is prepared to take the associated risk to start the business in the quest for making profit; and has the ability to obtain the resources to establish and grow a business”. Entrepreneurship exceedingly relies on entrepreneurs to start-up, develop and produce companies across the use of their

Businesses operating as family holdings or small businesses have various common practices considered effective towards organizational performance. While small businesses may at times be viewed by outsiders to be easy to run, they subject the owners and managers to the same kind of business stresses that large businesses present. This makes it imperative to apply various basic principles of management, marketing and conflict resolution strategies that are also applicable in large businesses. Through interviews, some information was collected on running various types of small businesses in order to determine the

Surveys show that owners of small businesses believe they work harder, earn more money, and are happier than if they worked for a large company. Before launching any business venture, every potential entrepreneur should consider the benefits of owning a small business.

The bond you likely have with the family or friend is typically higher than the one you have with a bank or lender.

One of the first choices that you will need to make as an entrepreneur is the manner by which the business ought to be organized. All organizations must receive some legitimate design that characterizes the rights and liabilities of members in the business' proprietorship, control, individual obligation, life compass, and budgetary structure.

Creating a corporation requires knowledge about all laws and regulations in the country of your choice. Usually, you need many approvals from different government agencies before you can do anything. I can ensure, it will be very difficult involving bureaucracy and patience. Probably you need lawyers and experts, supporting and advising you with all formalities. It is very essential when selecting the country and location of your corporation that required skilled and qualified labor is available. Another critical point is the cost of labor that will influence the cost of your product or service, speak profitability. According to Lapowsky (2010) before you start your corporation in any country, you must build connections and relationship to influential people supporting you (chap. 4). Khanna, Sinha and Palepu (2014) stated “Successful companies develop strategies for doing business in emerging markets that are different from those they use at home and often find novel ways of implementing them, too” (chap. 5).

The section on advantages of small business ownerships lists several reasons why an individual might pursue a small business instead of working for a corporation. For example, some individuals prefer being their own boss and enjoy crafting their own schedule taking into consideration their own unique family and lifestyle. Furthermore, the availability of affordable technology and internet access makes it possible to do certain types of work at home or on a small scale that in the past would have required the financial support and resources of a much larger business. Additionally, the list of 10 Successful Traits of Young Entrepreneurs helped me better evaluate my potential to start and maintain a small business.

Easy tax preparation since your business in not taxed separately so it is easy to fulfill the tax reporting requirements for a sole proprietorship. The tax rates are also the lowest of the business structures, and all profits go into the owner’s pocket

Owning a business is often a dream of many people but the reality of entrepreneurship can be an amazing experience. It takes a lot of planning and dedication for a business to be successful. Small business management is becoming very popular in the society in which we live. More and more people are looking to going into business for themselves. This paper will discuss how to start a business and it will also focus on the importance of family helping to run a successful business.

* Collaboration. As compared to a sole proprietorship, which is essentially the same business form but with only one owner, a partnership offers the advantage of allowing the owners to draw on the resources and expertise of the co-partners. Running a business on your own, while simpler, can also be a constant struggle. But with partners to share the responsibilities and lighten the workload, members of a partnership often find that they have more time for the other activities in their lives.