Global Business Sense

Small business occupies a majority of the American economy. Small business contribution to the American is of much significant. Three-fourth of the country’s new jobs during 1990 to 1995 was provided by this business only. It also has a good count in the past from 1980 to 1990.

More than 90 percent of the independent corporations in America have head count of less than 500. Small Business Administration was set up in 1953 to facilitate assistance and provide advice to business in U.S. This also helped small business to explore their potential.  SBA has around 1000 development centers across the world to assist the small business owners in providing both technical assistance and expertise advice.

They also promote small business by contributing to the capital for purchase of faculties and real estate in the form of loans with small interest rate. According to American Small Business Administration also called as SBA, small corporations contribute 52 percent of all the American workers. 19.6 million Of the working population In America works for companies which have less than 20 employees, 18.4 million for companies which have employee count between 20 and 100, 14.6 million for companies whose head count is between 100 and 499 and 47.7 million for companies which have more than 500 employees.

Small business which began with a small investment gradually grew and became market giants. There are many such instances. Some of the notable small business starters who are business giants now are computer industry giant – Microsoft, sports cloth manufacturers – Nike, international courier service agency – Federal Express and ice cream makers – Ben & Jerry’s

Contributors to small business in U.S:

In a small business, women’s population will be high. They find it easy to work in the small business, rather than working in stabilized companies where work pressure is high. Between 1987 and 1997, the small business owned by women got increased to as high as 8.1 million. This was around 89% increase when compared to the previous statistics. By 2010, this count is expected to rise by 40 %. Other than women, part time workers and aged people are also preferred by the business in America.

Strengths of small business:

Small business adapts quickly to the current economic situation. There is really no huge amount or time involved in setting up the operations for small business. Small business owners understand their customers very well and they have chances to interact with the customers closely. This also helps them in identifying the requirements of the customer.

Failure of some small business in U.S doesn’t affect the economy much. But, if a well established firm downfalls, then it will have a huge impact on the economy. For instance, the fall of Lehman brothers shocked the world’s economy to a greater extends. But, failure in small business will serve as just learning for the owners. Small businesses are exempted from many safety and health regulations and norms which are generally levied on business in U.S.