Small Business Administration : Small Businesses

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Introduction Small Business The Small Business Administration defines small business as a business with 500 employees or less. Small businesses are well known and acknowledged worldwide as important contributors to economic development and job creation. They also play a big role in the general health and welfare of economies, both nationally and internationally. The small business sector represents a statistically significant proportion of the world economy. (William Gale and Samuel Brown 2013) The U.S. Small Business Administration (SBA) reported that small businesses represent 99.7 percent of all employer firms. Small businesses have paid 44 percent of the total United States private payroll, and generated 64 percent of new jobs since…show more content…
They help in intensifying competition with the help of technology they master in increasing productivity and thus contributing in the development of the country, followed by economic growth.(Dr. Sangya Shrivastava 2013) Entrepreneurship has been given much emphasis by organizations and governments in recent years. It acts as a vehicle for small businesses. We can see the increasing level of economic development when more of the population gets involved in entrepreneurship which is basically self-employment. Entrepreneurship plays a critical role in the development of the economy as this is the key contributor to innovativeness and product improvement. It is one of the important ingredients to the creation of new employments and in the building of communities in ways of offering them jobs. By contributing to local charities, taking part in local business, investing in projects in communities, and creating and participating in different networks in entrepreneurship, they build up robust communities which contribute to the community development. Governments have struggled to develop policies which will enhance entrepreneurship by understanding the critical difference existing between small business owners and entrepreneurship. At the same time, a misconception about entrepreneurs and where entrepreneurs can be found can also help the local people to create the right picture of entrepreneurship and thus become aggressive and contribute to
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