Summary: The United States Small Business Administration

What explains the high failure rate of small business startup in the City of Brownsville? There are several influences that contribute to the failure of small business. According to (SBA, 2015) small business provides approximately half or 4.3 million of Texas’s private workforces. In 2010 there was 38,760 small business established in Texas only 68.3 percent of those business remained open two years later. This would indicate that approximately 31.7 percent of those businesses failed and the City of Brownsville is no exception. One major issue is that the City of Brownsville is a disadvantaged economically distressed region. The City sets on the Mexico boarder along the Rio Grande Valley, with a population of 183,887 within their community,

As a small business owner, I understand all of the difficulties that come with owning a business. I know about failure and have made a ton of mistakes through my business. At the same time, though, I’ve been fortunate enough to have success through my business as well. Other businesses, however, are not so lucky. The small business world is very difficult and the government doesn’t make it any easier. Without the NFIB, no organization would be truly representing the needs of small businesses all across the country. There would be no voice for small businesses at the federal and state levels if the National Federation of Independent Business wasn’t around. If that’s not relevance in the business sector, I’m not exactly sure what is.

Although so many businesses large and small are started every year, over 90% of businesses fail. Why is that?

The United State Small Business Administration was established in 1953. It states in its mission statement that it is an independent agency of the federal government used to aid, counsel, assist and protect individual small business. The S.B.A. helps preserve free competitive enterprise, which in turn helps our national economy to continue to grow. The agency does this by offering numerous initiatives to help small business owners to start and be successful with their business. They provide online training courses, provide information on loans and grants, and provide information on local S.B.A. offices. Information is also provided for disaster assistance and also helps locate people for mentoring and support.

“New research shows that the country’s rate of new business creation, which peaked about decade ago, plunged more than 30 percent during the economic collapse and has been slow to bounce back following the recession”(Harrison). In other words, 80 percent of small business fails within the first year (SBA). Small businesses are exclusive enterprises, organizations, or sole proprietorship's that have less workers and less yearly income than a general estimated business or partnership. While the rate of business development has hindered, the pace of business closings, which had held relentless over the earlier decade, began to rise in 2005 and spiked in 2008, according to data compiled by the Brookings Institute (Harrison). Consequently, business

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,

In today’s global market place economic stability may be challenging, especially for small business. As a resource there is assistance available through extensive networking and partnerships with both public and private organizations. SBA will assist, counsel, aid and protect small business in the United States, Puerto Rico, the U.S Virgin Islands and Guam with their concerns and interest. Therefore, the SBA aids Americans as they start, build and grow their business.

Problem Statement The fastest growing segment of business development in the United States comes from small business start-ups, and 42% of the businesses in the United States are women owned (U.S. Census, 2012). Women-owned businesses average 25% fewer profits annually than the average small business in the United States (SBA, 2012). Women businesses that show profitability increases for 5 or more years may have improved financial strategies (Mitchelmore & Rowley, 2013). Businesses that are profitable for over 5 years indicate the ability to sustain high profits, grow profits, and deploy effective strategies (Phillips & Knowles, 2012).

Small businesses are independently owned, for profit businesses which employees no more than 500 employees and are not dominant in its competitive area. Small Businesses are critical for the US economy because more than 99 percent of businesses in the US fall under the small business category (Farrell, Hirt & Farrell, 2009). This is clearly why small businesses are important for the US economy because of its percentage make up for the business industry. Small businesses also create opportunities for minorities and give women the opportunity to successful in the business world. Small business owners are not guaranteed

U.S. Small Business Administration (SBA) is a government agency that provides assistance for entrepreneurs and small business. The mission of SBA is to help Americans start, build and grow business. Because SBA knew it is challenging to strengthen the economic powers for the small business, therefore the office provides the following services for the small business companies:

It is a compilation and presentation of data collected by surveys of small business owners. It is a simple device designed to show how business owners feel about expanding their businesses, as well as how new entrepreneurs feel about opening businesses. It takes into account many factors to get an overarching index of business confidence. Some of the factors include the inventories, capital outlay, sales, and the economy. The report also takes into account subjective factors, such as whether the survey taker believes it is a good time to expand, as well as a brief explanation of why or why not. (Dunkleberg & Wade,

The use of critical success factors has covered several SMEs during the last decade. The scope of the small business may differ, but the

The Small Business Administration “aids, counsels, assists, and protects the interests of small business concerns.” They assist small businesses by providing them with whatever is necessary and will not stop until they get the business to be successful without their assistance. Although they are not able to give the business all of the necessities they need, they do their best and as much as they can do. Their motto is, “Aid, counsel, assist, and protect insofar as is possible, the interests of small business concerns.”

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.

Steve 's first foray into the world of small business came when he was an Invisible Fencing dealer. He operated this business on a part-time basis while remaining employed by a Fortune 500 company called Digital Equipment Corporation (DEC). While the Invisible Fencing business was not very successful, it was a valuable opportunity for him to learn important lessons about business in a relatively low-risk environment.