Forms of business small business

In the USA according to SBA (Small Business Administration) over 98 per cent of the nation’s companies are small business, independently owned and operated firms that are not dominant in their field. As a group, they account for nearly half the gross national product and are vital source of jobs, products and services. To be counted officially as “small”, service businesses must have sales below $3,5 mln, and goods-producing companies must employ fewer than 500 to 1000 workers, depending on the industry. Most small businesses fall at the low end of this size range. Four out of five have fewer than 20 employees.

Every year, hundreds of thousands of Americans buy an existing small business or launch a new one attracted by the prospect of running their own firm. Some have relatively modest ambitions; their goal is to have a little business that will provide them with a comfortable life – the neighborhood florist or the corner pizza parlour. Roughly 80 to 90 per cent of all small businesses in America are lifestyle businesses like these, called “mom-and-pop” operations. Over the years some grow into sizable operations. Pepperidge Farm started in the 1930s by one woman with a good bread recipe and today it is a multimillion dollar division of the Campbell Soup Company.

In contrast to lifestyle businesses, some small businesses have more ambitious plans. These high-growth ventures aim at outgrowing their small businesses status as quickly as possible. Often run by a team rather than by one individual they obtain a sizable supply of investment capital and then attempt to introduce new products or services to a large market. High-growth ventures operate most frequently in such high-technology fields as computers, medicine, energy and robotics. Some deal in consumer products and services.

It is not an easy matter to run a small business. Those who succeed, whether they run a lifestyle business or a high-growth venture, have certain characteristics in common. They are generally well organized and responsible, able to communicate well with customers and employees, willing to work hard, comfortable with a degree of financial uncertainty.

Those, who build successful business, are also willing to take advice of outside experts. Another trait that small business owners share is resilience. These men and women regard difficulty as a challenge and learn from their mistakes. They stick to their principles and refuse to take “no” for an answer. When things go wrong, they bounce back and try again. Even Henry Ford had two business failures before he founded his Ford Motor Company.

An entrepreneurial outlook helps the owner of either type of business find creative solutions to challenges and cope with substantial personal and financial risks. Among the most important components of that outlook is vision – and the persistence to make a vision a reality.

COMPREHENSION CHECK

Exercise 1. Answer the questions.

1. What type of small business is easier to run for you?

2. What characteristics should a successful businessman have to your mind?

3. What business is considered as small business?

4. What sales must have small businesses?

5. How many workers may be employed in small business enterprise? What does their number depend on?

6. Can a small business enterprise become a company? Give examples.

7. What is the difference between lifestyle business and high-growth ventures?

8. What is resilience? Do you have this trait?

9. Is resilience a vital necessity for a businessman? Why?

Exercise 2. Evaluate your own potential as a small business owner. Make a check beside one of three answers, and then read the directions.

A. Are you a self-starter?

1. Ido things on my own. Nobody has to tell me toget going.

2. If someone gets me started, I keep going all right.

3. Easy does it. I don't put myself out until I have to.

B. How do you feel about other people?

1. Ilike people. I can get along with just aboutanybody.

2. Ihave plenty of friends– I don't need anyone else.

3. Most people irritate me.

С. Can you lead others?

1. Ican get most people to go along when I startsomething.

2. Ican give the orders if someone tells me what weshould do.

3. Ilet someone else get things moving. Then I goalong if I feel like it.

D. Can you take responsibility?

1. Ilike to take charge of things and see themthrough.

2. I'll take over if I have to, but I'd rather letsomeone else be responsible.

3. There's always some eager person who wants tolook smart. I'm glad to let that person do the work.

E. How good an organizer are you?

1. Ilike to have a plan before I start. I'm usually theone to get things lined up when the group wants to do something.

2. Ido all right unless things get too confused. Then Iquit.

3. You get all set and then something comes alongand presents too many problems. So I just take things as they come.

F. How good a worker are you?

1. Ican keep going as long as I need to. I don't mindworking hard for something I want.

2. I'll work hard for a while, but when I've hadenough, that's it.

3. Ican't see that hard work gets you anywhere.

G. Can you make decisions?

1. Ican make up my mind in a hurry if I have to. It usually turns out O.K., too.

2. Ican if I have plenty of time. If I have to make upmy mind fast, I think later I should have decided the other way.

3. Idon't like to be the one who has to decidethings.

H. Can people trust what you say?

1. You bet they can. 1 don't say things I don't mean.

2. Itry to be on the level most of the time, butsometimes I just say what's easiest.

3. Why bother if the other person doesn't know thedifference?