In recent years large companies have also been paying their workers higher wages. And the more profit a company makes the more it benefits the economy. “Americans think the U.S. economy benefits when big businesses or small businesses make a profit, although, by 84% to 64%, more consider small-business profits helpful”(Saad). Although those are some supporting facts for large businesses in America, they are too powerful and too rich. In the past and even in present time large companies generally hurt their consumers and workers.
That is almost half of America’s working force. If taxes on businesses were to go up, many of the self owned businesses would shut down leaving many without jobs. When the wealthy and these employer businesses are taxed in excess, they tend to cut jobs
According to Bartlett, Doz, & Hedlund (2013), a small business is run and operated independently, has small influence on the sector in which operates and the number of employees is less than 500. Small businesses are important, and in the United States alone there are more than 27 million companies which make up more than half of American economy, Many of the companies that we all know such as Dell, Apple, eBay and Microsoft started as small businesses. Small businesses are important they: 1) Generate jobs 2) Encourage innovation 3) Support big companies Small businesses create since the majority of workers have their first jobs with small businesses before progressing to large companies. Overall in most developed economies such as USA and Britain half of all workers are employed by small businesses (Nickels, McHugh, & McHugh, 2011). At any time, there are many small companies starting and expanding which means that they need
Research has shown that self-employed entrepreneurs and business owners are three times more likely to become millionaires than those in conventional employer-employee arrangement. As a business owner, your earning power is theoretically without any limits as you have the opportunity to go as far as your business will take you. You also get to benefit directly from your success and take as little or as much from your business as you desire. The proverbial ‘fruits’ of your labors literally belong to you. Another immense benefit of owning and running a business, when viewed from a professional standpoint, is the fact that being an entrepreneur affords you the opportunity of advancing faster in life than you would in a conventional office setting.
So why they not warning at the beginning? These small business are very important for the country growth and development there are some factors that affect the small business such as lack of management skills, lake of financial support, lake of tanning, lake of infrastructure of the country, affect the small business, also the big reason small business fail is because the political activities also it was found that small business were closing down and reduced is because of tax charges, inequitable competition and inappropriate financing
Retrieved from http://digitalstrategies.tuck.dartmouth.edu/cds-uploads/publications/pdf/Round_Overview_ManagingOrgImpactpdf.pdf _____________________________________________________________________________________ 1.Discuss the reasons why small businesses are so important to the U.S. economy. Understanding that “Diversity is also desirable for innovation, flexibility, and organizational success,” how does it then play a part in small business success? Please cite your sources. The reasons small business are so important to the U.S. economy are that they create new employment opportunities. According to SBA, small businesses have been responsible for creating 64% of net new jobs in the country.
Studies conducted by experts on small business show a strong link between success or failure of small businesses and the start-up motivation of entrepreneurs. The strength of the entrepreneur's motivation determines the degree to which time, commitment, and dedication are put into implementing the process of setting up a small business. It is reasonable to state that small businesses are extensions of the owner. Considering this view, it is understandable that goals are the goals of the owner, whatever they are. The actions and decisions are that of the owner cum manager.
Another advantage that is gained is that small businesses can give more individual attention to the customers. On final advantage that is gained in a small business is when a customer is willing to pay more for their product or service if needed. So as you can see, small businesses can give their customers more wants and needs unlike the larger businesses. Why is it important to conduct research before starting a business? It is important to conduct research before starting a business.
This will create good publicity for the business as well as help the community in which the business may function in. A survey of 146 entrepreneurs conducted by Harris Interactive and Ernst & Young revealed that 90 percent of entrepreneurs surveyed give money to charity and 70 percent donate their time. Advantages and disadvantages of being an entrepreneur: Advantages: 1. Freedom / control If one has an employer and is not the owner of the business; one must meet all requirements of their employer and has very little freedom at the workplace or on the job. However, if one is an entrepreneur and starts their own business; they set their own schedule as well as make their own demands.
Before you take the step to becoming a fully-fledged entrepreneur as your self why. Is it because you want o be the boss and call the shots, are you a risk taker, want the flexibility, you have such a good idea you can’t not do it, or you just want to make a lot of money. Despite what Hollywood portray in spate of recent movies being and entrepreneur is not all-glamorous and leading jet set life style. Check out a recent Economist article – Entrepreneur Anonymous. Out of the 64 million things that need to get done where do I start.