Concerns Of Today's Small Business Owners example essay topic

Burke BembridgeBus 110 First Evaluation Instructor; Dr Chris EhiobucheDescribe the term Entrepreneurship and the challenges of starting a small business Entrepreneurship is the dream of a lifetime for most individuals. The idea of being in control on one's financial future by establishing, owning, and operating their own business has driven most individuals in the direction of Sole Proprietorships. Most plunge in looking at the advantage and over looking the disadvantage and challenges of Sole Proprietorships. This first challenge that one might face on the road to Entrepreneurship is raising the necessary funds to finance their business.

Financial resources are more limited for sole proprietorships because they are view as a high risk. Sole Proprietorships have few legal requirements and doesn't cost much once the start-up funds is raised he or she can start the business. To be a successful entrepreneur one must be responsible for all business decisions and be skilled in all areas of the business. Most entrepreneurs over look this trait.

Being able to control your business and make decision allows for flexibility when responding to changing business conditions. Operating a sole proprietorships takes a grate deal of time epical on start-up. To make most sole proprietorships work entrepreneurs must be willing to put in a lot of time more than the normal eight hours put in by most employees. Most business needs a great deal of attention on start up and the owner must will to, make the necessary scarifies. Most business owners choose sole proprietorships because the owner of a sole proprietorship retains all the profits the business earns.

The more efficiently the business operates the higher the profits. Owning and operating you own business can bring great rewards the idea of controlling all profits drive most individuals in the direction of sole proprietorships. Explain following forms of business (a) Franchise (b) Mergers (c) Sole Proprietorship (d) Partnership (e) Multinational company a) Starting a Franchisee is a grate way to build a business with out starting from the scratch. By becoming a part of a franchisee you may have the ability to nationally advertise and sell a product. This increase the opportunity for success in that franchisee gets a widely know and accepted product that customers know they can depend on. Franchising reduce the cost of owing a business, a franchiser provides a structured training program in how to start and Operate the business and also provide ongoing training programs for managers and employees.

Being a part of a franchise you may have easy access to financial assistance to cover start-up cost. With all the advantage that Franchising brings there are a few disadvantages. The franchiser gives up a lot of control over operation and has less control over its franchisees. b) Most Business merge to form a large company, to acquire products and services they may not have or to bridge the gap in the business cycle. In a horizontal merger companies that product the same product merge to form a larger company. This gives each company the opportunity to learn new ideas on operation and production of a product this will help to restructure a company and allows it to reach new cover new areas. Another form of merger is a vertical merger.

In a vertical merger a company merger with another company to acquire resources the may not have. This allows a company to focus in a particular area and extend responsibilities to another company concentrated in a particular area. A conglomerate merger gives company the opportunity to extend their business and respond to changes in the business cycle. A conglomerate merger is great for companies who manufacture and distribute product that are seasonal. c) The idea of being in control on one's financial future by establishing, owning, and operating their own business has driven most individuals in the direction of sole proprietorship. Becoming an entrepreneur is a grate way to start up and operation with little risk of liability exposure.

A sole proprietorship is usually a business that is established, owned, operated and often financed by one person. d) Having a partnership can be an ideal way to start a business. Having a partner can help push an organization in the right direction some advantage of partnership is ease of formation, Availability of capital, diversity of skills and experience, no special taxes, relative freedom from government control. There are different types of partnership that suites different type of business a general partnership in a general partnership partners share in the management and profit the next is a limited partners in a limited partnership liability is limited to the amount of their investment. e) Most corporation today are becoming Multinational Corporation they are moving their resources, goods, services and skills across national boundaries and in some cases without regard to the country in which they are located. Most corporations move in this direction to cut cost. In other cases a corporation may move in this direction to avoid some of the pitfalls they my face in their homeland. Multinational Corporation is heavily engaged in international trade.

Companies that are multinational have the opportunity to explore new technology around. What are the challenges of Globalization? Some of the challenges that most companies face in today global market is having a global vision being able to recognizing and react to international business opportunities. In a global most have to learn how to compete in a global market so they can say a head of their competitors. The ability to explore new ground and develop and market products that will reach customers on global scale is a must in today global economy. Most company go global to earn additional profits.

If a company produces a product that is not offered in another country they might take this opportunities to market their product aboard. With new technology such as the internet most company face the challenge of learning and using new technology to help push their organization in to the future. Going global means understanding world trade and different economy systems. Adapting to changes in our global market is a big challenge for most corporations. Not being able to capitalize on opportunities that a globe market may bring is key for success in today's business world. Another big challenge most corporations face is the ability to keep up with new technology.

Falling behind technology can be a big draw back in today's global economy. To stay successful most corporations must adapt while moving into the future. Discuss How Governments affect business. The Government affects different types of business in different types of ways in that there are different regulations for small companies than there are for large corporation. The addition of new, state and local regulations creates more compliance and reporting requirements for small. The Government review records to business to make sure they are in compliance with local environmental regulations.

This affects small business in that a small business may not have the resources to manage these tasks and may have to use out side resources to get the job done. The governments uses laws to regulate the practices of business some laws create problems for company by putting a limitation and resurrection on their practices. Government also affects business by taxation Income Axe, Property Tax Payroll Tax, Sales Tax, Excise Tax, Excise Tax are some of the taxation by the government. Some laws to protect business including the Patent copyright trademark services mark. Using laws to control business on way of ensuring that buyers and seller get the same rights.

Small company are affected greatly be the Government both on the positive and the negative side. Small business in most cases are not capable of meeting the demands of the government and must use out side assistance to comply with regulation this may cost a small company great deal of money. Some laws are to protect small company for consumers and larger company. Larger company may have the resources to meet Government regulation but have to deal with intensive regulation set by the government The Government affects business in many ways's both positively and negatively learning the lawn of business a company can use the law to their advantage What are the major concerns of today's small business owners and their possible solutions?

Small business are a major part of today's economy. Some concerns that small business face are the challenges of competing in today's global economy. Today many company find it difficult to keeping up with the changes in today's market. The risk of loosing time and money or not being able to reach organizations goals also is a major concern with small business. The standard of living has a grate impact on how a small business performs in that a small company may have to adjust there prices to meet the Standard of living with in their sundering. Other concerns of today's small business owners are revenue and profit.

To deal with some of their concerns small most business owners are moving towards partnership. A partnership allows small business owners to become more stable in today's market. Small business are capitalizing on trends by looking a customers spending patterns and creating goods to meet customers demand. Small business has a hard time finding and keeping qualified employees because they cannot offer the same benefits and opportunities. To manage and compete in toadies business market small business are moving into partnership as the business grows. This will allow for more financial and managerial resources.