SMALL BUSINESS ADMINISTRATION
A small business is the one that is operated and owned independently by an individual. It comes under the private sector and is not owned by the public. According to the traditional definition, a business is considered small if it employs less than 20 people. Small businesses play an important role in the economy of the country. It represents 99.7% of all the employment firms. It generates new employment opportunities for the people and according to SBA (Small Business Administration), it pays 44 percent of the entire total US’s payroll. Such businesses bring new innovations to the community in which it is built. Such small scale projects attract many new talents to the industry who can bring new innovations to the product. Such people lay solve and give solution to many problems faced by the company. Even the business that is run at big scale benefit from those running at a much smaller scale. These micro businesses may produce certain products that are required as a raw material for the products produced by the large industries. Small business possesses the ability to adapt to the frequently changing business climates. This is due to the well known reason that these small businesses are very customer oriented. For them the needs and the requirements of the customers are the first priority. This forces the customers to remain loyal to them and this prevents the demise of small business at the time of economic crises. The successful running of the small business means that money is coming back to the local community. A thriving micro business will generate a very high amount of revenue which means that this business will have to pay higher amount of taxes. Hence the money is coming back to the government. The government later uses this money for the progress of the local police, firearm department, health department and the education department. The positive aspect of the small business is that they do not always stay small. Many large corporations known today started off as a small scale business but now they work as the leading industries of the country. Most of the small businesses grow into large business.
It requires a lot of planning for the decision of your business location. One needs to look after many mandatory factors for the best result outcomes. One needs to map out your budget, your demographics, your access to local labor market as well as the safety for finding your perfect location. The major hurdle in most of the projects is the budget in hand. The point to be noted is that it is not only the price of the land that has to be taken under consideration but there are many other hidden and unhidden expenses as well. Once you purchase the land, a lot of money would be spent on the construction, renovations and decoration of the work area. Other than this, there are the annual property taxes about which a little research should be done hand. Not only this, the state has fixed minimum wage rates which should also be given special attention. After the budget for the location has been decided, other business competitions around that specific area should researched. High competition should be avoided because that may put the business at stake. One of the major and most frequent blunders done by the business administrator is that he doesn’t take the access local labor market and suppliers into consideration. If you cannot find the potential employees in your proximity, then bringing labor from far off spaces will be in economical for a business at small scale. Similarly, the suppliers should be given the ease to find you. After looking after all the other factors, a final check on the crime rate in that area should be made so that one may provide a safe working environment for your employees. Doing your research beforehand and consulting other small business holders may be of great help in finding your business location. Once you have set up your small business and run an...
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