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.
