Who are the Small Business Owners?

Who are the Small Business Owners?

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Who are the Small Business Owners?

The United States of America is a free market. As a result of this structure, the legal system and the United States Constitution allow for free entry into competitive markets. A large aspect of America's industry and economy is based off of individual innovation and the entrepreneurial spirit. In fact, a number of laws, legal frameworks, and government-run programs have been established to encourage entrepreneurs to enter the free market with an innovative idea that leads to the creation of a small business.

 

Without small businesses, not only would the culture or tradition of many American cities crumble, but monopolies and oligopolies would form and essentially strip the market of diversity and competitive pricing. The demand and supply would be askew, as the majority of Americans would be forced to pay for a good marketed and sold by an enormous corporation.

 

We have already seen these effects. The inability to diversify the market led to companies swelling and becoming too large to efficiently run themselves. As the recession looms, however, many Americans are opting to start their own businesses and become small business owners.

 

A small business owner is essentially an entrepreneur or a group of entrepreneurs. Small business owners are those individuals who create or build-off an idea for a profitable business. The small business owners will then act on this idea and make it tangible through the set-up of an organization or company. This step is crucial; a number of people can refer to themselves as 'small business owners', but unless action is taken, there is a large difference between those with ideas and small business owners.

 

A small business owner is liable for his or investment. In essence, the company becomes their major asset and is a product of their hard work and time. Small business owners are held separate from CEOs or owners of large corporations.

 

Since the investment of capital and time are primarily the small business owner's, he or she has the majority in the company. The small business owner makes the majority of decisions as they relate to the good of the company. In addition, the small business owner has all the say in expansion, marketing, advertising, organizational efforts, and seemingly every decision that affects the company. This characteristic of full control and full risk is the primary reason why many Americans opt to become small business owners; while maintaining a risk, a small business owner also has the ability to create their own schedule, and of course, their own products or services.

 

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