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Small Business Administration and Characteristics

Posted on October 18, 2020December 8, 2020

Business is a business characterized by an owner who is simultaneously managing the company itself and generally has a relatively small capital, but a small business or small business can become a big business if the business actor pays attention to the strengths and strengths of running a small business. For example, a franchise business is a network business as one of the businesses that start with small capital if and only if the business actor or in this case is the Franchisor starts and opens a franchise business systematically starting from introduction, franchise management, financial systems and administration to starting to open. franchise business.
Understanding Small Business
For most people, a small business is roughly a barbershop, an auto repair shop, a grocery, or flower shopping. They are numerous and owned by couples, and are called “mom-and-pop” businesses. However. A neighborhood mom-and-pop grocery store is small in comparison to giant supermarket chains like Kroger. Kroger, on the other hand, is small in comparison with common motors. Sales returns and annual numbers in addition to employees, other measures of size include assets, equity, and market share.
Small Business Features

The Committee & Economic Development conducts research and formulates praise; policy recommendations on national and international economic issues said that a small business is a company that meets two or more of the following measures:

  1. the owners manage business affairs
  2. a person or small group of people providing financing
  3. owners and employees live (live near the company)
  4. the firm is small in comparison with others in the same industry (size can be measured in assets, number of employees, or sales results)
    Factors In Small Business Success

In the discussions that follow we will see the main strength of small companies, greater flexibility, small companies tend to be more flexible than large companies. They can adapt their plans very quickly with attention to customers and employees, lower fixed expenses, and greater motivation of owners. With more personal concern for customers and employees, small business owners have more direct contact with their customers and are better satisfied with what they want from very large companies. They can respond quickly to changes to those they want and offer services. Customers are more personal. Larger companies spend heavily on marketing research to save (keep accounts on changing customer shortages.
Small Business Administration is an independent agency of the USA government created in 1953 to promote and protect the interests of small business firms. her job is to provide financial, management, and procurement assistance to small companies. for example, residents and businesses in Los Angeles became eligible for small business administration loans under a disaster recovery program after chaos ripped through the city on a declared disaster area.
The small business administration offers a variety of financing options for small companies. Agents rarely make outright loans. It is mostly a guarantor who guarantees loans made by the owner of private funds to small companies. A small business investment firm is a privately owned, privately operated, small business administration venture capital firm (SBA) that is permitted that helps smaller financial firms to expand and modernize.

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