Small Business Management Concepts (Coursework Sample)

Small Business Management Concepts
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Small Business Management Concepts
What is the Definition of a Small Business?
Small businesses are the foundation of most economies, including the United States economy whose most businesses have less than 5 workers. Although there are many definitions of a small business depending on region and the type of segment in which the business operates, the United States small business association defines a small business as a business that has annual revenue of between 1 million and 40 million dollars and employs between 100 to 1,500n workers (Milano, 2017). For instance, a roofing contractor who makes total revenue of less than 16.5 million dollars is considered a small business since large businesses in the roofing sector make almost 10 times that amount in one year. Some businesses are also defines as small or large businesses based on the number of employees they have, for instance a coating material business with less than 750 workers is defined as a small business since large businesses in the coating material industry are known to employ thousands of employees in the United States. Small businesses in the United States account for the largest percentage (54%) of employer businesses with each business employing an average of 5 employees (Diandra & Azmy, 2020). The statistics indicate that the number of small business in all state continue growing, with a considerable percentage making it to the medium and large business categories. Some people also define small businesses based on their growth in terms of revenue and in terms of the number of employees it hires each year.
How do you explain the growing Interest Young People have in becoming Entrepreneurs?
The number of young Americans who have been venturing into entrepreneurship has been rising compared to the number of young businessmen and women during their parent’s times. Teenager millionaires are becoming common in the United States, with most starting their businesses from scratch then growing them into multi-million companies and employing thousands of employees (Ebert et al., 2018). Young Americans have been getting venture capital from as young as 18 years of age and taking their businesses public by the time they reach 30 years. Some of the famous young entrepreneurs that are now CEOs include David Karp of Tumblr, Mark Zukerberg of Facebook and Keving Systrom of Instagram (Sauka & Chepurenko, 2017). Recent studies have shown that young Americans are more interested in becoming entrepreneurs since they have broader goals than their parents when they were young. They are also keen on gaining financial freedom from their parents at young ages, something that pushed them to venture into entrepreneurship at tender ages. The rising number of young millionaires in the United States also serves as a motivation to young Americans to start their own businesses. Recent studies indicated that 30 percent of young the millennial generation in the United States who have graduated from college and universities have some kind of small businesses or planning to venture into entrepreneurship. The internet has also been a motivational factor for young Americans who now have the privilege of researching for different types of business, opening online stores and marketing their business through social media platforms. Unlike the older generations, young people in the United States feel more equipped to handle marketing responsibilities of new businesses, with the array of marketing tools that are available on the internet. With the increasing rate of young entrepreneurs in the United States, the business world should expect the percentage of millionaires less than 40 years to increase and serve as motivation to graduates who are planning to start their businesses.
What are Business Ethics? Why are they Important?
Business ethics are a group of ethical and moral rules that govern behaviors, decisions and values of a business and the people who operate the business. Some organizations and business segments change business ethics into laws and policies to govern employees, the environment and the interaction of the business with competitors in various segments (Bowie, 2020). Ethics in leadership is one of the most critical parts of business ethics since it sets moral standards for business leaders when dealing with employees and other stakeholders in organizations. The management team is at the core of ethics in leadership since it is responsible for setting and scrutinizing all business decisions that affect the business. When leaders are guided by ethics, the run the organization based on ethical practices and behaviors and encourage employees and other stakeholders to uphold similar or higher standards in the course of their duties. Ethics in business is critical since encourages employees to act and make ethical decisions in their specific departments. Employees who follow ethical cords also increase productivity in organizations and boost trust between the management and fellow employees (Lipska & Kijanka, 2019). When the management knows that employees follow ethical standards, they can delegate them to duties that are above their skills or leave them to work without supervision since they trust their capabilities. Ethics also increase the businesses reputation to stakeholders and customers; customers are attracted by employees who serve them with respect and stakeholders respect organizations that take care of the environment and communities in which they operate.
What are some of the Laws and Regulations that Small Business Owner must be Aware of?
Taxation laws are the most critical business laws that must be followed by small businesses; it is important for owners of small businesses to understand the details of their state laws depending on their business segment and locations. Following taxations laws also means paying the right taxes knowing the right timelines to avoid disappointments and penalties that are associated with lack of compliance (Clark & Moutray, 2004). Small businesses must also understand the difference between federal and state taxes to avoid confusion or fail to comply with the two taxes. Employment and labor laws are equally important for small business owners; they determine how businesses are required to hire employees, their treatment at work and the wages they should receive depending on the market in which the business operates. The labor laws also have specific safety laws under Occupational Safety and Health Administration that govern the safety standards of companies and working sites to ensure that employees are well protected from all hazards, diseases and accidents. Small businesses should also understand advertisement laws that safeguard consumers from false advertising. The laws ensure that companies use real advertisements, images, messages and videos that represent their products and services to avoid misleading unsuspecting customers.
Discuss the Character Traits that Small Business owners must possess
Confidence is one of the best character traits the small business owners should possess. They should understand their abilities and trust their knowledge and skills to help them in running the business and confronting any issues that might arise along the way (Kerr et al., 2017). Business goals are also easily attainable when a small business owner has confidence a