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Small Businesses

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Content

This research seeks to investigate the nature of small businesses in the United States. In addition, this research establishes the contribution of small businesses to the United States economy, and explicates a lucrative small business that any individual opting to venture into the market can operate. The essence of this study is because recent research establishes that small business contributes an immense deal to the development of the economy, and they provide employment. Individual researchers and institutions carried out research on this topic, and my paper argues for a better interpretation.

Methodology

This research utilizes a comparative case study as the methodology. This is because of availability of materials regarding the research topic. In addition, by comparing with previous researches and studies, this research ascertains various points made regarding small business.

Research Findings

In the United States, small businesses go by the name of pop-and-mom. The three main characteristics of the small business include private ownership, employing small number of employees, and small volume of sales. Small businesses are characterized by private ownership since they require a smaller amount of capital to establish and operate. Secondly, small businesses usually have a smaller number of employees (Sicker, 2002). This is a vital rule in the United States, and that many small businesses comprise of less than 500 employees. Thirdly, the small businesses have a small volume of sales. This small volume of sales results because the businesses do not target a larger market, and sometimes it is due to lack of a larger market for them to sell their products (Sicker, 2002).

Research establishes that small businesses contribute to the economy in various ways. Firstly, the small business provide employment to many people both educated and the uneducated. Research asserts that a huge number of the private sector is formed by small businesses. According to the figures of small business administration, the number of employees in the small business sector increased significantly between 2001 and 2002 (Admiraal, Ács, Thurik, & Carlsson, 2006). Another contribution of small businesses to the economy is the creation of gross domestic product. The creation of gross domestic product takes several forms such as creation of employment, payment of taxes, and utilizing of their own resources or the resources manufactured locally (White, 2001).

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A preferable small business venture will be the hairdressing industry. The hairdressing business appears a lucrative industry since people want to appear neat and trendy. In addition, this industry focuses on both sexes, which makes it hard, for a person running the business to run out of customers. The hairdressing business involves opening a salon combined with a barbershop that will be catering for both the male and female hair issues.

Several reasons contribute to the hair dressing business. Firstly, the business does not require a large capital base in order for it to be in operational. It only requires an interested party to purchase necessary hairdressing equipment to facilitate commencing the business. Secondly, there is less or no advertisement required necessitating the functioning of the business. Thirdly, availability of customers makes the business lucrative since people will always want to appear neat and trendy (White, 2001).

Conclusion

Research establishes that small business contributes a vast deal in the running of the United States economy. The small businesses are characterized by their small capital base and volume of sales ratio, which limits their growth in comparison to large firms. Small businesses also have less number of employees, and in the United States, they have less than 500 employees. Small businesses contribute to the economy through the creation of employment and taxes. A lucrative small business will be a hairdressing shop. This business is lucrative because of the associated low costs required for their formation. In addition, the hairdressing business does not have many legal processes involved.

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