Question

Answer the following question listed below. This assignment has a 150 minimum word count. You will also be required to reply to 1 response (100 minimum word count for each response) and use at least one credible reference.

1. List 3 facts about small businesses.

2. What are advantages in starting a small business?

3. Which Entrepreneurial Resource would you make use of?

Answer 1

1.a. Approximately 543,000 new businesses are launched each month, reaching over 6.5 million per year. Even though only a small fraction of these companies can succeed in the long run, they still offer huge opportunities.

b. It may seem like big businesses with large R&D budgets are churning out new technological developments, but it's really small businesses that make it happen. Small firms produce 16 times more patents per employee than large firms.

c. Nearly half of small business owners expect their business to grow over the next six months. However, about 75 percent of those surveyed said they had faith in their business ' future — the highest percentage reported in the last four years.

2. Maybe the biggest reason any entrepreneur opens a new small business is to gain independence and become their own boss. Yet starting a small business from scratch often provides freedom from purchasing a franchise and sticking with its marketing and operating model. Although franchises are generally established companies, a new location will be successful without a guarantee. A small business also provides the owner with a measure of financial independence, enabling her to grow the business at her own pace and increase profit margins.

It also has the distinct advantage of reducing development costs to start up a small business. A small business owner may slowly expand the company without having to commit a large amount of money to start-up costs. It is possible to start a small business from home and gradually build a customer base before opening a retail site. For example, an entrepreneur who produces various cooking sauces

3. Successful entrepreneurs are individuals who are fully committed to their business ventures. You must be prepared to put your heart and soul into what you are doing, truly believe in your product or service, and be prepared to work long hours to make others believe in your product or service as well. Once you start a business, you need to be prepared to go for what may seem like an endless stretch of time without rewards like holidays, and even necessities like wages. And all this must be achieved without the safety net to which salaried employees are used, such as pension plans and benefits. In reality, you have to have a completely different attitude to that of an employee

Of example, if you are not sufficiently familiar with accounting to manage your own records, you will need to employ a bookkeeper and/or accountant. If your business is online, it would be prudent for you to employ a company to design your website and manage the back end, unless you are a website development expert in person. Once you build your business plan, a clear appraisal of your skills and expertise must be one of your first moves. What aspects of the company are you prepared and willing to deal with and which aspects would require more training on your part or calling for help from outside?

It is particularly important to find adequate start-up money because there is no guarantee that your business will make money right away and certainly no guarantee that your new business will bring enough money for you and your family to live on. Without start-up capital, you can't start a business, the total amount of money you need to open your doors to business, and keep them open until you can depend on enough revenue.