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.

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.

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,

The purpose of this paper is to identify how different factors effect on the growth of small businesses. The growth of small businesses has been influenced by factors such as growth strategy, business forms, short and medium term goals, financing assistance, organizational structure and staffing needs, customers and promotion, and ethics and social responsibility. In this paper will to discuss how the different factors alter the advancement of small businesses.

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

Almost every entrepreneur had a rocky start and most small businesses fails during the first year of its opening. Two entrepreneurs in their twenties, who wanted to help people live a better and healthy life, loaned some money to open a small business selling natural food store in Texas. At the time, there are not many natural foods markets around. The couple named their business SaferWay as a spoof on Safeway. Like almost all entrepreneurs, they had a rocky start, they even got kicked out of their apartment for storing food products. After a couple of year, the two entrepreneurs agreed to merge SaferWay with Clarksville Natural Grocery and named the new business Whole Foods Market. Even after the merge the company continued to have challenges like any other businesses. In less than a year after opening, a devastating flood wiped out Whole Foods inventory plus thousands of damages. Without any insurance the company’s future looked undesirable. Thanks to the community, they opened the store again in a month.

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.

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).

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

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.

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.

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).

Success is elusive in the entrepreneur’s efforts. Entrepreneurs face variety of problems in an endeavor to setup new enterprise particularly during the growth phase of the organizational life cycle (Syed Fida Hussain, Tahira, & Khalid, 2013). Although, the motives of an entrepreneur maybe to help others or to become wealthy; obstacles such as growth and unforeseen problems could depict challenges along the way. The behavioral health field is becoming more wide spread and an interest to entrepreneurs (Wei-Skillern, 2010). Nevertheless, behavioral health is a critical and often-overlooked component of a successful population health management program; a topic frequently discussed but rarely addressed comprehensively (Floyd, 2016). To address

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

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.