Question

We started off this class by looking at the data about Small Businesses to understand the importance of data to the success of the US economy and its significance in the world. Throughout the class, we examined the best management practices for small business managers and owners to increase the chance for success. The Small Business Administration (SBA) has offered some additional facts that may suggest several interesting ideas for the future of small business and its need for good management skills.

Below are some points from the reading to start you thinking.

19.3% of small businesses in the US are family owned

30% of family owned businesses survive the transition from first to second generation

12% of family owned businesses survive the transition from second to third generations

3% of family owned businesses are operated by the fourth generation

2 % of Millennials; 7.6% of generation X; and Baby Boomers at 8.3% are likely to be self-employed.

23% of new entrepreneurs in 2013 were millennials or younger (which was down from 35% in 1996).

The 1 year survival rate for new small businesses is 79.9%

The 5-year survival rate for new small businesses is 50%

The 10-year survival rate for new small businesses is 33%

Best Places to start a business in the US

using this information Evaluate the statistical data presented in the reading, and in the theme introduction and profile (type, owners, business form, etc,) a startup business that is likely to succeed and a business that is likely to exist after 10 years.

Answer 1

A business start up is something that is newly started by anyone individually or as an entire family. It is very important to make sure that the startup works successfully and that it works for the long run.

From the reading, we can evaluate the data as follows:

• In US people prefer to go with the family business and is carried out by upcoming generations for years to come.
• Only 30% of the family businesses goes from the first generation to the second generation.
• Only few of the businesses are carried forward to the third generation and rest do not continue for long.
• The family businesses in US runs from generation to generation. But their rate of survival decreases step by step.
• Most of the young generation are likely to start their own business and work as a self employed person.
• The survival rate for the new small scale business varies from year to year.
• 79.9% of the businesses survive only for the period of one year.
• Only half of the businesses had a tendency to survive for a period of 5 years.
• Only 33% of the businesses survive for a period of 10 years or more.

Example of a business that is likely to survive for long;

• A restaurant business started on a small scale can prove to be a successful business for young generation.
• Introducing the home made food items and healthy items can prove to be a successful idea.
• Young generation can be captured by starting this line of business as they are the ones who prefer eating outside more often.
• The business can be expanded with the passage of time as new things can be added to the menu and new additions can be made to the taste.