The Pros And Cons Of Small Business

875 Words 4 Pages
n our world today there are two basic types of businesses. Businesses that are locally owned and corporations. Corporations first appeared in America around 1870 when men with men like Andrew Carnegie and John D. Rockefeller forever changed business in the United States. Before this time, locally owned or small family businesses were the norm. In today’s business world, however, corporations far outnumber small businesses. There are many differences between the two such as government assistance available, and perhaps the most important difference of how they impact the economy.

Entrepreneurs are hardworking, determined individuals. They have to be in order to start their own businesses, and continue to be in order to make that business thrive.
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(Small Business Saturday) The economic effects of locally owned businesses can be felt at home, in our own communities, whereas the profits from corporations like Wal-Mart only return a small portion to the community and the majority of it goes to make someone else rich. For example, if you spend $100 at a local business, on average about $68 will stay in your community and go to things like community services, local taxes, or donations. The $32 that does not stay goes to import supplies. In contrast when $100 is spent at a corporation only $43 stays in the local economy and the other $57 leaves. Besides the obvious answer that money spent locally stays local and boosts local economy there are a number of other reasons why small businesses benefit us more than corporations. (Small Business Saturday) Small businesses are threatened by big corporations and their vast resources but surprisingly the number of small businesses have increased by 49% since 1982. (Grasshopper) According to the Small Business Administration small businesses have created 8 million jobs since 1990 in the U.S. (Small Business Saturday) In addition to jobs and money for local programs and economy, small businesses help to boost community well-being. One major benefit to a community that has several small businesses as oppose to a few corporate businesses is that have local owners who live in the community know what’s in the best interest of the people and can make important decisions accordingly. (Mitchell) The entire community benefits from having more small businesses and less corporate

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