Small Businesses Are Essential For The Growth Of Any Economy

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Background: Small businesses are essential for the growth of any economy since they are considered as building blocks. They can be equated to stem cells in the human body that have the ability to self-generate and differentiate into various structural forms. Small businesses can be established to cut across industries, countries, and communities. One of the primary roles of small businesses is the creation of employment for large numbers of people in society. In the United States (US), small businesses are estimated to create jobs for approximately 64 percent of the population with most of them having less than 500 employees. In other countries like Australia, small businesses are classified as those having less than 20 employees.…show more content…
Importantly, strategies play a significant role in the growth of small businesses. This is because they offer a company a direction and come up with the way through which the goals can be achieved. However, early research indicates that small businesses do not take into consideration the role played by strategy in ensuring that their growth is attained. Moreover, much of the existing literature emphasizes large businesses entities with no explicit theoretical frameworks explaining the management of small businesses. The results of the studies confirm the relevance of the subject and the need to conduct more research on this topic to develop the strategies that will offer small businesses guidance and direction on the various development strategies. Problem Statement: Business growth relies on the strategies that are applied in production and marketing of products. Managers should set goals and the timeframe within which the goals should be achieved. This can be done only if there is sufficient knowledge regarding the market. Therefore, it is important that adequate research on growth strategies for small businesses is carried out. Currently, there is limited knowledge about small businesses which can be justified by the small level of interest, inadequate economic data, and the assumption that small businesses do not use growth strategies. It is important to note that small businesses working with
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