Question

Please explain in 175 words:

Explain the importance of small businesses to the American economy.

Answer 1

ANS) --The importance of small businesses to the american economy is to evaluate the usefulness of small businesses to the American economy.The small business is referred to as the small business industry which is owned by a single owner or a independent owner and will be having only around 500 employees.

-- In US there are around 27 million small scale business and the small industries are applying a great impact on the US economy.And this type of small industries are providing around 50% of the country GDP or Gross Domestic Product.This type of small industry is having the major role in this kind of development of this country.And many of the small business owners like the Thomas Edison had their own place in the history of US.

-- The persons like Steve Jobs,Pierre Omidyar and Michael Dell had made a vast change in the business in America and now also many new business mans are trying to make changes in the economy of America.These new business owners are not only helping to build the economic well being but also helping to make growth in different areas of socioeconomic development.

-- If we are looking in an another way this kind of small business innovation is giving jobs and many other effective opportunities to the women and men who are included in the minority or local group of the country.The SBA or Small Business Administration has showed that the minor companies are receiving more and more patents than the big companies.In the last some of the years the big firms made 1.7 patents for each 100 staffs but minor firms made 26.5 patents for each employee.

-- Some of the small firm developments are airplane,DNA finger printing,lights,Air conditioning.The new small firm founders are trying to make new things from old things.The victory of small businesses in promoting the creativity has been noticed by the large companies and they are also trying make many changes like the small companies.

-- The small company has also served many large companies by helping them as a sales agents for their items or products.So these are the importance of small business to American Economy.

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