One benefit of local businesses is that their products tend to be locally made, or selected to suit local tastes. As a result, customer loyalty tends to be much stronger. The work of SWPC ended in 1946. Let’s take a closer look at each of these contributions. Table 5.1 “Small Firm Job Gains and Losses, 1993–2008 (in millions of jobs)” reports the net increase in jobs generated by small firms for the fifteen-year period of 1993 to 2008 and breaks it down into job gains from openings and expansions and job losses from closings and contractions. The impact is that people get an income that enables them to purchase different commodities such as food and clothing. Please share your supplementary material! They supply many of the components needed by big companies. Small businesses tend to foster environments that appeal to individuals with the talent to invent new products or improve the way things are done. The average premiums rose from $5,700 in 1999 to $12,700 in 2009. The millions of individuals who have started businesses in the United States have shaped the business world as we know it today. As consumer demands shift, small businesses find themselves at the front line of making adjustments to keep their clientele happy in a way that larger companies cannot. Economic growth results in bringing a high rate of employment. Some small business founders like Henry Ford and Thomas Edison have even gained places in history. A few—through their innovations—contribute to society as a whole. It was not until another war crisis that a new temporary small business agency emerged. It’s obvious that larger company’s lack satisfactory customer service. A weak economy does just the opposite: discourages start-ups and expansions, which decreases the workforce through layoffs. As a result, customers opt for firms where they spend less. Likewise, local small businesses tend to buy locally as well, pumping more of their profits back into the community than their chain store counterparts, helping with economic development. Headd, B., “An Analysis of Small Business and Jobs,” U.S. Small Business Administration, Office of Advocacy, http://archive.sba.gov/advo/research/rs359tot.pdf (accessed August 30, 2011). They also contribute to growth and vitality in several important areas of economic and socioeconomic development. This makes the community better. 3. Fast decision making is encouraged, their research programs tend to be focused, and their compensation structures typically reward top performers. Breitzman, A., and Diana Hicks, “An Analysis of Small Business Patents by Industry and Firm Size, Office of Advocacy, Small Business Administration,” U.S. Small Business Administration, http://archive.sba.gov/advo/research/rs335tot.pdf, (accessed August 30, 2011). Over the years, the list of important innovations by small firms has included the airplane and air-conditioning, the defibrillator and DNA fingerprinting, oral contraceptives and overnight national delivery, the safety razor, strobe lights, and the zipper (Baumol, 2005). For example, automobile dealerships, which are generally small businesses, sell vehicles for the big car makers. Most new entrepreneurs help the local economy. Given the significance of family firms in the U.S. economy, it is instructive to consider the operating advantages of these enterprises. Local Jobs. Unfortunately, the government may not adequately provide these commodities. We speak with Professor Mark Watson-Gandy about the finer points of English contract law, including the formalities required in drawing up a contract, what can make a contract invalid and possible ways to exit legally from a contract. Small business owners are always looking to grow, but the prospect of taking a profitable business to the next level can be daunting. A small firm can give greater personal contact with customers. In the last decade, the cost of providing health care insurance has skyrocketed for small businesses. But the survival and expansion rates for small firms is poor, and so, again at any given point in time, many small businesses close or contract and workers lose their jobs. In particular, small businesses do the following: In addition, they complement the economic activity of large organizations by providing them with components, services, and distribution of their products. Yahoo.com, Amazon Income Statement, http://finance.yahoo.com/q?s=AMZN&ql=0 (accessed August 30, 2011). U.S. Small Business Administration, “What is SBAs Definition of a Small Business Concern?,” U.S. Small Business Administration, http://www.sba.gov/content/what-sbas-definition-small-business-concern, (accessed August 28, 2011). Small business is the portal through which many people enter the economic mainstream. People need a lot of things, including food, clothing, and other luxuries that make their lives better. Large businesses are already firm in their respective industries and can offer lower prices. According to one SBA study, the supportive environments of small firms are roughly thirteen times more innovative per employee than the less innovation-friendly environments in which large firms traditionally operate (Baumol, 2005). 5.4 Advantages and Disadvantages of Business Ownership, 5.7 How to Succeed in Managing a Business, Chapter 7: Recruiting, Motivating, and Keeping Quality Employees, Chapter 9: Marketing: Providing Value to Customers, Chapter 10: Product Design and Development, Chapter 11: Operations Management in Manufacturing and Service Industries, 11.1 Operations Management in Manufacturing, 11.3 Managing the Production Process in a Manufacturing Company, 11.4 Graphical Tools: PERT and Gantt Charts, 11.6 Operations Management for Service Providers, Chapter 12: The Role of Accounting in Business, 12.5 The Profession: Ethics and Opportunities, 14.4 A House Is Not a Piggy Bank: A Few Lessons from the Subprime Crisis, Chapter 15: Managing Information and Technology, 15.4 Computer Networks and Cloud Computing, 15.6 Security Issues in Electronic Communication, Chapter 16: The Legal and Regulatory Environment of Business. 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