Save the Small Business
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Authors
Brieden, Geoffrey D.
Issue Date
1990
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
PART ONE: INTRODUCTION Small business is a very detailed part of our free enterprise
system. However, not all small businesses are the same, and
all don't have the same problems. For convenience sake, only
manufacturing and retailing will be covered in this project,
excluding the service industry for various reasons.
PART TWO: RESEARCH AND GENERAL ANALYSIS
2.1 Small Business in America
Throughout our history, small business has been the backbone
of our society, accounting for 98 percent of our all firms in
the United States. There are many ways to define a small
business, both quantitative and qualitative, depending on what
you are interested in. For our purposes, we will use a mix
of both quantitative and qualitative, to build the framework
for this study.
2.2 Failure and success
In the last century, the independent workforce has dwindled
from 80 percent in the late 19th century to under 20 percent
today, and of those businesses that open every year, about
one third of them close within that same year. And so we ask
"why do so many small businesses fail?" However, in asking,
we must be sure to weed out the bias opinions of those who
have failed, because they wouldn't dare blame themselves.
2.3 The Main Causes
Businesses fail for a varied number of reasons, but they have
been broken down into broad groups in order to find the main
ones. Key reasons for failure include mismanagement, poor
financing, excessive competition, skilled employee shortages,
regulations, taxes, and lack of research and development.
There are, of course, other reasons for failure, but these are
the causes in the majority of the cases.
2.4 Alleviations and Solutions
The problems of small business are many and varied, however
most of them are from human error and are correctable. The
government has recognized this and has tried to help the small
business regain a strong status. Similarly, our educational
system has put forth an effort to prepare better college
graduates for the world of independent business.
PART THREE: WORK EXPERIENCE: THE SMALL BUSINESS UP
CLOSE IN OPERATION
3.1 The Nature of the Business
For the work experience part of my SIP, I worked for Bryan
Biologicals Inc., where I was assistant office manager. The
firm is a small medical supply company, employing six people
full time, with annual gross sales of just over $750,000. It
deals mainly in the Michigan area, w.i:th some accounts in Ohio.
3.2 Operation
BBI is a distributor for mainly five companies, dealing in
plastic and glass laboratory supplies, diagnostic testing
equipment, and blood serums and solutions. They supply
doctor's offices, hospitals, and private laboratories, with
sales representatives to service all customers. All business
and sales orders from customers must pass through the office,
where they are invoiced, filled, packed, and shipped. The
president/owner takes care of inventory control, overhead, and
expenses, and the bookkeeping, a key to monitoring performance
is handled daily by the assistant office manager.
3.3 Business Strategies
Through my work at BBI, I have picked up some hints, including
strategies on pricing, discounting, and clientele building.
These are advantages I picked up in my close work with the
president/owner of the firm.
3.4 The Success of Small Business: Working Hard to Make It
Work for You
The success of a small business, especially Bryan Biologicals
is dependent on the cooperation and coordination of its
employees. With a strong personal effort from each employee,
plus good management and leadership, success will eventually
be obtained by the firm.
PART FOUR: FROM THE ECONOMIC STANDPOINT
4.1 Economic Studies
Small business is a major int·erest to the economic
disciplines. Economists study the small business world
because it is the closest thing to perfect competition that
we have in the United States, with business relying on the
market and other firms. Small business is also a key source
for new ideas and inventions.
4.2 Finance
Some knowledge of finance is a must for all beginning
entrepreneurs. They must secure financing for their operation
through themselves, investors, or loans, all of which require
some familiarity with basic finance.
4.3 Market Research
Small business, in many cases, relies on the economist to do
market research for them, to help them map out the feasibility
of the business venture. The recommendations of the economist
can play a key role in making the decision to open the
business or not.
4.4 Accounting
Accounting is one of the most important economic disciplines
in small business. Without proper accounting or bookkeeping,
a business has no way of monitoring its performance as well
as the performance of its customers.
4.5 Management: Balancing it all
Without good management to hold a firm together and make it
run smoothly, a small business has absolutely no chance for
survival. With the proper training, a good manager or owner
can lead his firm to success.
PART FIVE: ANALYSIS AND SOLUTION
5.1 Implemented Aid
The government has tried to help out the small business with
financial, managerial, and technical assistance, as well as
offers for government contracts, but their efforts fall short
of assistance for many entrepreneurs. Similarly, education
has been improved to give more attention to courses dealing
with the small business. This also has been too little, in
that most business courses still focus on the large scale
firm.
5.2 The Need for Regulation
We need to bring the resources of both the government and
educational systems together to create one universal program
to regulate and monitor small business. We need to make it
harder to jump into independent business, in order to educate
the ignorant on what they are getting into.
5.3 The Proposed Small Business Regulation Administration
Under this proposal, a person would have to read a booklet on
small business management, take an examination on the
material, and be interviewed to find out if the person is
capable and prepared, before they are allowed to operate their
own business. If the applicant passes these sections, he will
receive an SBOL, a Small Business Operator's License, enabling
him to proceed with his business adventure.
5.4 Checklist for Organizing and Operating a Small Business
This is checklist for people who wish to go into business for
themselves, so that they will be more prepared for trying to
start up. It is to help the entrepreneur to not forget any
aspects of the organizing of the business.
PART SIX: CONCLUSION
This section is a wrap up of all conclusions, analysis, and
recommendations offered in this project, and restatement of
the problem at hand.
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56 p.
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