Small Businesses Are Essential For The Growth Of Any Economy

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 sm all 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 withShow MoreRelatedWhat Does The Study of Regional Economy Teach Us?1436 Words   |  6 Pagesscience is a sub field of social sciences that analyzes approaches to urban, rural, or regional problems. It involves the study of spatial patters to analyze the economic factors of a region. The study of regional science is necessary to improve the economy in todays competitive global market. This study helps the government organizations to identify and make efficient use of public resources by implementing best practices to meet the expectations of the general public. The primary goal of regionalRead MoreAccounting Software Bridge Gap For Small Businesses1607 Words   |  7 PagesAccounting Software Bridge Gap for Small Businesses Small Businesses face more challenges than large corporations, it is often difficult for small businesses to remain competitive in a constant changing economy. Many small businesses lack the capital, know how, and budgetary allocation that helps small businesses build and expand. Therefore, small businesses depend on accounting software to narrow the gap between large corporation and small businesses by reducing cost, boost efficiency, reduce manualRead MoreAnalyzing Three Levels Of Entrepreneurship : Individual Level, Firm Level And Macro Level1322 Words   |  6 Pagesindustries and national economies, the sum of entrepreneurial activities constitute of new ideas and initiatives. This competition of new ideas and initiatives leads to change and variety in the marketplace and this can lead to economic growth. This model show the relation between the entrepreneurship and economic growth. How are entrepreneurs related to the increase in standard of living? There are many reasons why entrepreneurs are important to the economy; they create new businessRead MoreRole Of Contracting Officer And The Small Business Association1417 Words   |  6 PagesThe purpose of this paper is to provide an overview of the small business set-aside program and its intent. We will look at the role the contracting officer and the Small Business Association (SBA) play in the making the determination to set-aside acquisitions specifically for small business set-asides and the factors they consider when making those decisions/determinations. There are certain criteria that must be met and we will discuss those criteria in relation to the type of set-aside and theRead MoreThe Benefits and Problems of Democracy1750 Words   |  7 Pagessome of the clear advantages and disadvantages of having a democracy in terms of dealing with corruption, a serious issue in both democratic and non -democratic countries alike. First of all, we must see that most democratic styles of government and any of the slight variations do give a great deal of power to the people and since the people have the power to elect individuals to represent them, the individuals who are in power should sufficiently reflect the view of a majority of the population. FurthermoreRead MoreTechnology And Economic Growth Development1280 Words   |  6 PagesTitle Technology and economic growth Author Introduction/Significance of the Problem This is in an age of amazing technological transformation compelling people to consider the association between technology and economic growth. Fundamentally all economists agree that productivity growth is the key to doing better over the long term. A standard of living of any nation is the most important sign of national economic performance. The technology and economic growth combination yields human developmentRead MoreNet Neutrality : What Is It1239 Words   |  5 Pageselement for the health and growth of our economy, because so much of our economy depends on free, accessible and open internet that allows all companies the ability to capitalize on the global marketplace. No preferential treatment is given to the â€Å"big guys†, which provides a level playing field for the small businesses and new â€Å"start-ups†. The White House website features a piece in which President Obama explains, â€Å"An open internet is essential to the American economy, and increasingly to our veryRead MoreThe Businesses and Development of AKH Group Essay example1161 Words   |  5 PagesIntroduction to AKH Group – AKH Group has various businesses spread across IT, Consumer Products, BPO and Telecom. The group has a history of being in business for the last 35 years. The founder of the company follows an austere way of working. The business expansion has been organic as well as inorganic. The IT business was fostered through organic form and the BPO was an acquisition. Similarly, the Consumer Product business was a mix of organic and inorganic through foreign acquisitions. TheRead MoreEconomics For Business Assignment : Economics1362 Words   |  6 Pagesjudgement. The degree of government intervention may depend on many factors affecting the economy as a whole, a specific market and the businesses operating within it. The nature of different government regulations may have a restrictive nature, however some government action may have a beneficial effect on business activity and positively impact their objectives. It is essential to look at this argument from the businesses perspective to dete rmine the government impact on their performance. It could beRead MoreThe Big Business And Economy1512 Words   |  7 PagesThe big businesses that dominated the United States during the nineteenth century should not be considered Robber Barons. Although some people’s livelihoods were destroyed, they were not setting out just to ruin people’s lives. They wanted to industrialize, make money, and make the United States’ economy more stable. If they continued to operate on a small scale, then the money would continue to be scarce for everyone as it had been in the past. They had to do something different in order to see