A small business is one that is independently owned and operated. It exerts little influence in its industry (a small pizza place won’t change how pizza is made or how service is performed) and typically has less than 500 employees. There are 28 millionsmall businesses in the US generating 54% of sales and 55% of jobs in the country. As you can see, small businesses hold a very important role in America’s economy.
Importance of Small Business
Small firms hire more
frequently and fire more frequently
than other form of business and organizations. There are many new ventures
opening per year, many closing at the same time too. A strong economy encourages
individuals to star new business, weak ones does the opposite.
An Entrepreneur is an individual who starts a new business, someone who uses resources to implement innovative ideas for new ventures. They identify a business opportunity and assume the risk of creating and running a company. Accepting this commitment isn’t an easy task, entrepreneurs must be confident that they can manage stress, commitment, and hardships in order to succeed.
There are 3 main characteristics of any entrepreneurial activity:
Innovation: They offer a new product, develop a new technology or open a new market.
Running a Business: Setting up a business to make a profit, producing goods or services.
Risk Taking: the outcome of an entrepreneurial venture is unknown. There is always a certain degree of uncertainty.