Discuss the Aphorism "Small Firm Growth Being the Only Measure of an Entrepreneur’s Success".

Small business are said to be the backbone of the United States economy. It said that small businesses contribute to growth and vitality in the specific area of the United States economic development. Small businesses play a huge role in how the business world is shaped. Entrepreneurs are smart, creative and innovative however, those same entrepreneurs need to have some knowledge that the study of microeconomics focuses on. With the study of microeconomics, their product or future business will succeed in an economic view point.

Large corporations, such as Coca-Cola, Nike, and eBay, started off as small business that grew to become a large company and play as a major player in the national or international level of marketplace. In fact, ImageFirst Sings started as a very small company that only generates about several thousand dollars per month. As time goes by, ImageFirst Signs now able to generate for about 3.3 to 3.4 million dollars of revenue annually. Provided that, a small business can also helps in shaping the size and growth of Gross Domestic Product (GDP) values in the United

Small businesses are the core of the engine that runs the American economy. They are a very intricate and essential part of what makes America strong. Annually there were approximately 400,000 new small businesses started every year in the United States of America. Before the recession the normal business closure for companies in America were approximately 100,000 annually. This rate of exchange between new and closing businesses is known as “the birth and death rate of American companies”. After the recession the death rate of businesses in the United States has increase exponentially, growing from 100,000 companies a year to approximately 470,000 companies closing annually (Joseph, 2014). Most may think this is a result of the recession,

Small businesses are becoming a trend in the work environment today. The analogy of small businesses to large business brings about the question, “Can they eventually equal up in the world

“John Labatt Blows In and Out of the Windy City, A Case Study in Entrepreneurship and Business Failure, 1889-1896”, a 2014 article by Matthew Bellamy clearly illustrates multiple aspects working against the Labatt Brewery in its attempt to jump into American saloons in the nineteenth century. Being the first Canadian Brewery to tackle an expansion undertaking provided an interesting study for the author. The article discusses the brewery’s history and compares the different possibilities that lead to the downfall of the company’s American Expansion. Debating with the readers whether the failure was caused by environmental factors or strong personality traits, by not understanding the American consumer base or by not planning for new expenses- Bellamy covers many possible angles as to where the collapse could have faulted.

Small businesses are mighty minnows, reflecting the competitive spirit that a market economy needs for efficiency; they provide an outlet for entrepreneurial talents, a wider range of consumer goods and services, a check to monopoly inefficiency a source of innovation, and a seedbed for new industries; they allow an economy to be more adaptable to structural change through continuous initiatives embodying new technologies, skills, processes, or products (Ibielski 1997, p. 1).

Charli, because the percentage of representation of business in the US is represented by small businesses in America is so high, small businesses are detrimental to the success of the US economy. Small business contributes to the local economies and brings growth to communities. Small businesses also provide a substantial number of jobs for people within communities. Small businesses such as computer shops, barber salons, some restaurants and service stations are small businesses within the community that provide jobs to people within its community. Just because an organization starts out as a small organization, it does not mean that an organization will always be a small organization.

Abstract This paper examines the long-standing theory that small firm growth is often constrained by the quantity of internal finance. Under plausible assumptions, when financing constraints are binding, an additional dollar of internal finance should generate slightly more than an additional dollar of growth in assets. This quantitative prediction should not hold for the relatively small number of firms with access to external equity. We test these predictions with a panel of over 1600 small firms and find that

According to Forbes.com, “approximately 543,000 new businesses get started each month” (Nazar). That places the annual total of small businesses created at more than 6.5 million, in the United States alone. A small business is defined as an enterprise that has less than five-hundred employees. There is a total of about 28 million small businesses in the U.S. These businesses are responsible for the employment of roughly 50% of Americans. With an addition 6.5 million businesses being created annually, you would assume that this number is climbing, however, that is not the case. More employer businesses close per month than open up (Nazar). As calculated by the Bureau of Labor Statistics in the United States, the failure rate is as follows; after one year 21.2%, after two years 32.1%, after five years 51.2%, after ten years 66.6%, and after twenty years 79.6% of all newly created small businesses fail (“Entrepreneurship”). What is the reasoning being that? Why are so many small businesses struggling to keep their doors open? There are three main reasons why businesses that are new and lesser in size struggle to survive and often lead to the shutting down of these newfound entrepreneurships. These sources of failure include poor decision making due to a lack of experience, financial issues, and competition from other businesses.

Small businesses are the backbone of national economy and play a leading role in innovations as well as in creating jobs. Small business has the intrinsic needs to growth. Obvious contributions of the growth of small businesses include the increased return on investment and job creation. The interesting and valuable question is how small business grows and are all small businesses growing? It is no surprise that the growth of business is a core topic both in organization theory and entrepreneurship, both are interested in the process and causes of business growth. Stages of growth models, which assume that business go through some distinct stages from birth to maturity, have been the most popular theoretical approach in academic to understand small business growth. Although the stages model of growth has been criticized for being too sequential and linear which is unrealistic and inconsistent with empirical evidence (e.g. Phelps et al., 2007; Levie and Lichtenstein 2010), various new stages models of business growth have been developed since the 1960s.

Much has been written in the literature regarding reasons for small business failure, leading to confusion about those studies, as it is often difficult to define failure. Failure is a person or thing that proves unsuccessful. Success is the favorable or prosperous termination of attempts or endeavors; the accomplishment of one’s goals. There are fewer studies citing reasons for small firm success. Factors citing reasons for failure may also appear as factors affecting success according to Gaskill, VanAuken, and Manning (1993).

The potential role of smaller firms in employment creation is the most noticeable motivation for the recurring interest on that segment which has prompted the investigation of the factors that affect firm survival for that size class. The empirical literature, focused on developed countries, and has triggered controversies associated with size measurement and estimation issues [see e.g. Davis et al. (1996) and Davidsson et al.(1998)]. Evidence seems to indicate, as expected, that the net job creation effect is likely to be stronger in service industries. Nevertheless, more recent studies provide appealing evidence on particularly high net job creation by small firms also in the context of the manufacturing industry as suggested by Hijzen

Small businesses are important to the U.S economy for multiple reasons. According to the U.S Small Business Administration, small businesses represents for 99.7 percent of all employer firms, have generated sixty four percent of new jobs and paid forty four percent of the total united states payroll (Brown, 2017) . Small business is an important role not just in the US economy, but they also play a major role in the growth of the individual community that they are located in. Small businesses give citizens of the community an opportunity for employment by offering jobs that the individuals may not have to have degrees or accolades to qualify for unlike jobs in larger corporations. Although small business is very important to the economy and the community, often times small

If the small firm is actively involved in international trade as are most little firms in specific areas in Europe, case in point then worldwide business is an extremely important subject to study particularly if consolidated with cutting edge European dialects. One of the enormous brakes on the advancement of little firms is the way that a large portion of those that could stretch globally neglect to do so in light of the fact that they fail to offer any staff at administration level with the abilities to help them grow abroad.

In order to perform any empirical research on the effect high growth businesses have on the economy, clear guidelines have to be established to categorise and identify them. The most widely used and accepted guideline is the OECD definition of high-growth firms. The OECD suggest to use two performance indicators, the employment size and the turnover. Enterprises are classified in the high growth sector if their average annualised growth is larger than 20% per year over a 3 year period, ideally in both previously introduced indicators (OECD, 2007, Ch 8). Additionally a size threshold of 10 is applied to the employment measure to exclude 100% growth rates of companies that grow from one to two