Can small businesses solve your tough economic times?

Can small businesses solve your tough economic times?
written by: marvintana
According Forbes, there are almost 28 million small businesses in the USA alone. And did you know that small businesses constitute a larger population of a country. Small businesses are the backbone of various economies in the world, from the US, EU, Asia, to Africa. They clearly have their ups and downs but without wasting more time, lets take a look at why you should have a small business.

What are small businesses?

They are privately owned entities, organizations, or institutions. They are sometimes referred to as small-scale. Their produce is normally small as well as their scope and operation. Typical they are conducted by an individual or several parties (partnerships). The owners normally possess some kind of special skills that the existing potential market needs from time to time.

Classification of small businesses

If legal procedure are followed. The word “small business” has a different meaning, or rather every country has set up specific laws to determine weather a business is small or big. Nevertheless small businesses can also be big, but when it comes to their classification there is a lot to look into, from the capital, revenues generated, etc . So in other words, small businesses are identified in terms of:

• The number of employees present

• The amount of money the business is worth

• By the number of parties involved

• The amount of revenue returns for the business

• Annual sales or the turnover)

• Value of the resources in the business including the services offered to the employees such as health insurance, house allowances among others

Examples of small businesses

Since they exist in almost all countries of the world, depending on the country’s policies of operation, examples include:

• Small shops

• hairdressers,

• tradesmen,

• lawyers,

• accountants,

• restaurants,

• guest houses,

• photographers,

• small-scale manufacturing,

• and online businesses

Why start a small business?

• They require little capital to put up

• You can be your own employer

• You can get profits if well managed

• With the right market, overtime your business can grow

• You can get access to big loans and expand your business

• They exist in a robust fields so you can choose where your skills are applicable

• With small businesses you can open in different areas and still manage them just by yourself

Finally, small businesses are a better way of creating employment. Countries that have big economies have millions of these businesses running from every part of the country as well as different sectors of the economy. Governments that have appreciated their value have different schemes to help establish more diverse small business opportunities today.