Small Business Growth
Small businesses make up a significant part of the economy of any country. Technology is the most significant contributor to the growth of small business firms. These firms are best poised to benefit from the development of new technologies and in the process; they drive older firms with obsolete and inflexible technologies out of the market. The term used to describe this state of affairs is creative destruction (Gaspar et al. 107). With the level of unemployment rising globally, small business growth must be promoted at all costs. Some of the ways to ensure the growth of small businesses is internet access, globalization, government policies, as well as innovation and invention.
Large firms have the advantage of economies of scale in the production of services, and this helps them dominate various sectors of the economy. However, the size of small businesses comes in handy when it comes to taking advantage of new technologies and venturing into new areas of business. The internet plays a significant role in the growth of a small business. Across the globe, billions of people have access to the internet, and this presents small companies with a cheap and useful marketing tool (Burns). Globalization means that people from different parts of the world can come together to share ideas, thus promoting business by allowing them to explore new opportunities. Business people can expand their business to a global level using export and import logistics.
The government has a crucial role to play in promoting small businesses. Some of the ways in which it can do this are to simplify tax rules, improve access to financial services such as credit and reduce burdensome regulations associated with the businesses. Small businesses are a significant part of the economy. In the U.S alone, they account for roughly half of the jobs in the country, and they also create new jobs every year.
Burns, Paul. Entrepreneurship and small business. Palgrave Macmillan Limited, 2016.
Gaspar, et al. Introduction to Business. Academic Media Solutions, 2016.