Micro, Small And Medium

There is a reason the term “small business” is vague; it reflects the lack of a generally accepted definition. The U.S. Small Business Administration (SBA) has established numerical definitions of small businesses. These size standards vary to reflect industry

* Small Businesses are companies that have between 1 and 99 employees under its organization.

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,

With the competition for jobs becoming more and more difficult, instead of applying for some and crossing their fingers that someone else doesn’t get the job before they do, some people are deciding to start their own small business. A small business is basically a privately owned company that is run by either a corporation, a partnership, or just a single person. Now, owning a small business comes with its pros and cons. However, the pros of owning a small business seem to outnumber the cons. So if I had the choice, I would be interested in owning a small business.

As for the U.S economy today, small business has the main roles to contribute significantly in a whole gross domestic product (GDP). In the purpose to motivate and encouraging small business performs efficiently, the U.S government provides a couple major resources, the Small Business Administration, and the SNBC as the guidelines to address business concerns and other matters related. According to entrepreneur.com, small business represents over 6 trillion dollars in total economy outputs, and account over 3% as a franchisee. (sba.com, 2004).

Small businesses are generally started by an entrepreneur portraying their idea to the public and selling for a profit, beginning with a micro business, sole proprieter or a partnership. This will eventually evolve into a small business if they hire more employees. As more employees are hired, this adds to their quality of life through giving a sense of self worth to those employed. Innovation is important to small businesses, as it opens doors into oppertunities for future endeavours. Innovation will allow a business to predict possible future needs and to fulfull these before other competitve businesses do.

"Small businesses are responsible for two out of every three new jobs created in the U.S. We need these small to

As much as the masses champion small businesses and denigrate big ones, large organizations are essential to a modern economy. For all their missteps, businesses with thousands of employees enjoy economies of scale that let them fulfill crucial economic functions. Replacing FedEx or UPS with a plethora of tiny businesses, for example, would undoubtedly hurt America’s logistics networks. Replacing the Big Three automakers with smaller ones would likewise cause cars to become unaffordable to most. To be clear, small businesses play a vital

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 medium sized enterprises and small and medium sized businesses are often referred to as SMEs. These are companies whose number of employees or turnover falls underneath certain limits. The EU defines companies with fewer than 50 employees as small, and those

Small firms are good for those people who have experience in particular field but do not have a necessary amount of resources, in the terms of resources contain land, labour, capital and enterprise. Small firms not require more space to start production so require less amount of land same as land in production small firms require less number of people. Enterprise is the risk taking ability of the owner.

​The term “SME” is commonly used to refer to Small and Medium-sized Enterprises. The term covers a variety of definitions as well as measures. However, in most of the various definitions of what is an SME, employment is the most widely used criterion for categorizing the size of the firm. Moreover, SMEs are often defined as businesses with fewer than 500 employees. However, a number of countries, including some in the European Union use a lower cutoff of 250 employees. SMEs are important in the economy because they have some unique benefits to the economy chief among these being employment and job creation among others. The following discussion explores the impact of SME to the economy, especially in regards to employment and the creation of jobs among others.

Small and medium-sized enterprises (SMEs) are a key source of innovation and make a significant contribution to the economy of New Zealand in terms of employment, output and growth. There is no universally definition of an SME in New Zealand. However, from a government perspective, they are considered to be firms having the following traits: personal ownership and management, having few specialist managerial employees, and they are not part of a larger business organization. These traits are typically demonstrated by SMEs in New Zealand, so New Zealand politicians and business organizations are usually define SMEs as enterprises with 19 or fewer employees. According to report 2011, SMEs account for 31% of total employment, and contribute 40% total outputs (Ministry of Economic Development, 2011).

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.