The Importance of Small Enterprises in the United States

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 business are said to be the backbone of the United States economy. It said that small businesses contribute to growth and vitality in the specific area of the United States economic development. Small businesses play a huge role in how the business world is shaped. Entrepreneurs are smart, creative and innovative however, those same entrepreneurs need to have some knowledge that the study of microeconomics focuses on. With the study of microeconomics, their product or future business will succeed in an economic view point.

In the late 1800’s is when small business values and beliefs would be tested with the growth of railroads, telegraphs. Machinery, steam engines, and the rapid population growth. People from the time currency was created to this day are power and money hungry. They want to capitalize, become larger, bigger without regard or worry. This took a hit to small business across our fairly new nation. If you look at the history of U.S. business then you can figure out that every business started small. Example would be Pittsburgh’s Carnegie Steel Company, now known as U.S. Steel. Now the largest steel producing corporation in the United States of America. (Conte, 2008)

Some key contributions of small business in the U.S. economy is that they create new jobs, create new innovations at twice the rate of their big business counterparts, and they tend to find more opportunities than big companies.

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,

Small business is at the heart of the economies of small towns all over the United States. Yet, big box stores like Wal-Mart and Target are growing increasingly popular in these same communities. This is because they are able to provide a wide variety of goods and services and the lowest prices possible. In weaker economies, these convenient and thrifty options can help stretch a family’s wallet and minimize the time it takes to run a household. However, these benefits come at a cost. Many have argues that Wal-Mart destroys any competition in a small town, ruining small businesses.

The SBA is a government agency in the United States that provide support to small businesses and entrepreneurs. According to the small business administration there mission is “to maintain and strengthen the nation 's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters.”

During testimony to the Small Business Committee it was said that the cost exceeded what Congress ever intended and had outweighed the benefit expected to shareholders and management (Iliev, 2010). The growth of small business is a prominent national interest and an important part of the economy but the regulations are not able to protect investors and simultaneously encourage their growth (Castelluccio, 2005). Fortunately, there have been subsequent laws passed that reduce standards as well as offer opportunities for exemption to certain regulations which offers some relief but not

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.

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.

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:

Small businesses are the heart of the United State economy. There are 28 million small businesses in America and count for more than 54% of sales (Small business trends, n.d.). Many of those businesses are started by entrepreneurs who are willing to take risks and develop their visions and dreams of owning a business in today’s competitive market. That was the case when Victoria Carolina Pocasangre opened Pocasangre Olivia Dental, a small dental practice in the heart of Clovis, California five years ago.

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 businesses are important to the U.S economy for multiple reasons. According to the U.S Small Business Administration, small businesses represents for 99.7 percent of all employer firms, have generated sixty four percent of new jobs and paid forty four percent of the total united states payroll (Brown, 2017) . Small business is an important role not just in the US economy, but they also play a major role in the growth of the individual community that they are located in. Small businesses give citizens of the community an opportunity for employment by offering jobs that the individuals may not have to have degrees or accolades to qualify for unlike jobs in larger corporations. Although small business is very important to the economy and the community, often times small

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.