Good Essay On Advantages Of Small Businesses

Type of paper: Essay

Topic: Business, Workplace, Economics, Taxes, Small Business, Economy, Community, People

Pages: 1

Words: 275

Published: 2020/11/05

Sam Walton, Bill Gates, and Steve Jobs are among the few individuals who have contributed, and still are contributing, a significant percentage of income to the overall national income though their business creations (Longenecker 34). Their companies are ranked among the best and largest companies not only in the United States, but also in the globe. Small businesses are increasingly becoming the backbone of the economy of the American economy. It is approximated that more than fifty percent of the working class work for small businesses (Daily 8). Arguably, the power of numbers has made small businesses crucial in the current economy, as it is evident from their various advantages, including economic growth, created employment, and fulfilled the needs of our locals.
Small businesses create job opportunities for many people. Activities such as sales and customer service are common within small businesses, due to the desire of expansion, unlike in already established businesses. The small business enterprises are also easy to get and procedures for recruiting are not sophisticated. It is argued that more than the small businesses contribute about 65% of the new jobs created annually (Longenecker 88). Most employees, especially the women, thus operate within the small business enterprises. However, it is difficult to ignore the influence of the large businesses, especially in relation to their ability to attract and retain employees (MacGregor 70). Even though that is the case, the small businesses have indicated that their contribution in the economy, in terms of employment, is major.
Small business enterprises have positively met the needs of the locals and this matches corporate social responsibility (MacGregor 71). Small businesses have maintained strong mutual relationships that benefit the communities around. This is done by taking an interest in the well being of the community and generating good will, support and loyalty of the community. The community in turn builds a social license that operates the business and the community. Problems between the business and the community can then be shared. This is unlike big businesses that focus on international spheres (Longenecker 114).
Small enterprises boost economic growth and they are among the most common sources of revenue. Each business is always licensed and is required to pay tax in the forms of such and renewals of terms with the authorities (MacGregor 77). Being that these small businesses also employ people, these people also get to raise revenue by paying tax and circulating their money in different forms. The existence of money in all spheres thus stabilizes the economy (Daily 19).
In conclusion, the paper aimed at explaining how small businesses are important and this has been evidenced by several explanations. By creating employment, meeting the needs of the locals and boosting growth of the economy, small business enterprises have proven to be important. Small businesses are thus not as small as people see them because their advantages are big. Those who want to venture into entrepreneurship should thus try the small businesses and enjoy the flexibility and benefits.

Works Cited

Daily, Frederick W. Tax Savvy for Small Business. Berkeley, Calif: Nolo, 2012. Print.
Longenecker, Justin G. Small Business Management: Launching and Growing Entrepreneurial Ventures. Mason, OH: South-Western Cengage Learning, 2012. Print.
MacGregor, Robert C. Small Business Clustering Technologies: Applications in Marketing, Management, It and Economics. Hershey, Pa. [u.a.: Idea Group Publ, 2007. Print.

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Good Essay On Advantages Of Small Businesses. Free Essay Examples - Published Nov 05, 2020. Accessed June 27, 2022.

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