Small Business Ownership

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Think about a world with just big corporations and no small businesses. There would be no chance for the common man to make a good living, this is why people need small business ownership. Small business ownership is very beneficial in today’s society. One should know how to start a business, with this understanding, as well as knowing the pros and cons. One can do great things for their community.

The history of small businesses goes over 500 years ago. Farmers are a good example of some of the first small business. Merchants bought the grain from the farmers, and flipped it for a profit at the markets. Market owners were actually running a small business by renting out stalls (small apartment) to the merchants. Small businesses also existed during the medieval times. During this time there were many occupations that would be considered a small business. During the medieval times armor was customers to fit each warrior to wear and was crafted by the best craft people of the period. They was also called blacksmiths, blacksmiths would also forge weapons, sharpen weapons, and repair armor making them one of the most important small businesses in the town. Carpenters played a diverse range of roles during the medieval cities. Carpenters built household goods like furniture and roofing, they were considered elite craftsman. (“bebusinessed”).

Sometimes these individuals would take on an apprentice. These small businesses remained largely the same for thousands of years. So with history comes change. A key component to small business development took place during the medieval times. Guilds began to play a significant role in the town’s business structure. Guilds were medieval association of craftsmen or merchants. Guilds were considered one of the hallmarks of the medieval business. Over time the skilled craftsmen in the same towns realized that they could help one another out by forming guilds together. The guilds would regulate certain craftsmanship standards in each town. Guilds acted as early unions during this time (“bebusinessed”).

Several major technologies changed the fate of the world and the small businesses forever. These technologies included the development and promotion of wide scale energy production like steam power, gasoline, and the development of electric motors. By 1914, small workshops were basically replaced with large factories. Large factories dominated the European economy by the beginning of World War I. Calvin Coolidge, president of the United States famously said, “The Business of America is business. In 2006, Christopher Conte amended the famous Coolidge quote while writing for ejournal USA. Conte wrote, “For the first century of the country’s existence -until the 1880’s- it would have been equally accurate to say that business of America was small business since virtually all businesses in the nation were small in those years”. The new technologies included the railroads, telegraphs as well as the development of the steam engine causes big businesses to thrive (“bebusinessed”).

As large businesses thrived small businesses survived. Small businesses survive because they are the most adaptable type of business structure. Small businesses lack the hierarchical management like those of big businesses and generally remain nonunionized (not belonging). Small businesses play multiple roles, have fewer employees, and are good to their employees. These traits make small businesses adapt to working with the global economy. Small businesses are alive and thriving today (“Bebusinessed”).

Starting a small business can be a very exciting adventure, and incredibly challenging. It offers a number of advantages such as being one’s own boss. Running a business allows one to make their own schedule while making a living doing what they enjoy doing. Being a successful small business owner requires planning, creativity, and hard work. One must ask themselves if they are comfortable with taking risks. Risk to a business can be beneficial or detrimental to the business. Owners have to negotiate everything including leases, contract terms, and rates so they need to have very polished negotiation skills. Good negotiation skills will help business owners save money and are able to keep a business running smoothly. It is important to have a good strong support system during the times that a business owner will be faced with making many important decisions (“Guide to”).

The big question is how does one start a small business? The first step is one of the hardest and that is finding out what kind of small business the owner is going to do. There are so many choices to choose from. Small business owners also need to think about what profession they see themselves in. Whatever the situation, owners should consider many different factors before settling on a concept. First, owners have to see the market demand, to see if the produce has a demand, and if the community is needing the business. Owners that are developing the business have to find a place for operations and housing. Owners have to make sure everything is legal and to make their business thrive. Owners now find out earnings and profits not only for themselves but for all employees. All business owners today need electronic equipment such as computers, printers, scanners, fax machines, and photocopiers. All of these factors will help the owner keep up with how the business is functioning. Owners need a vehicle and license and permits for transportation and a way to get their product out there (“Weiss, Geoff”).

The best way to strike out is to do it gradually and developing a business plan is a very important when starting a business. Business owners need a good name, product, and be qualified to run this business. The product needs to be in high demand, if it is in a high demand the product will be sold much faster. One needs to make sure the business is in a good location so the business can thrive. Owners need to know if they need employees or not and most small businesses hire their close friends and family. Starting up a business takes a lot of time, it is not as simple as starting up and large profits from then on. Business owners will need to be responsible for their business finances (“Guide to”).

So there are many different business owners have to buy and rent for their businesses to get started. One of the things that business owners need is good insurance, because stuff could happen to a business owner’s vehicle or the building. The owner needs to have all the tools and equipment to produce the product at marketing cost. Business owners have to buy licenses and fees so the business will be legal. Last but not least, owners have to pay their workers. Business owners will need to pay all the bills off on time. Owners need to know what is going in and out of the business. With all of the upfront cost of starting a business there are multiple ways to cover or help with the bills. Grants are money from the government to help out the business. Grants are a great way to get the business up and running. Business owners also have credit cards, the business owner uses it just for the business and that is. It is a good way to get good credit for the business (“Guide to”).

There are many of pros and cons about a small businesses. The pros are that an owner can create their own working environment. The best thing pro is owners are the boss of everything about the business. Owners are able to manage their time better to suit their personal life. They can hire people to take care of the tasks they find tedious or do not like doing. There is no limit on the amount of income owners earn. Running the business successful business is prestigious. Owners gain business knowledge and experience that he/she can use the rest of he/she life. There is financial gain to owning and running a business (“A Touch of Business”).

Some of the cons are that when there is a problem, it falls in the lap of the owner. There is no one to blame but the owner, it is the owner’s business and owners are always in control. Start-up phases take time to complete. Owners may not get paid for a long period of time, because the business is not doing well. Owners may have to put in a lot of long hours to make sure the business is doing ok and staying intact. There is pressure all the time in businesses to perform and be very successful. One must need to be able to adapt to change and quickly. To owners it is not just an eight hour job and go home. For owners if there is a problem or important and finished business it is owner’s responsibility to take care of it. There are no guarantees that the business will succeed and there is increased liabilities (“A Touch of Business”)

It is beneficial to develop marketing skills if owners want a successful business. This can be as simple as placing ads, promotions, signs, or anything that gets the right people to know about the business. Those who are seasoned procrastinators, will have a hard time finding success. If just moving along then the owner will probably miss out on a lot of great opportunities. Being successful means getting things done quick, fast, and in a hurry. To be successful people usually have to balance between their business and their personal lives. Keeping a balance between owners work and personal life is an absolute must. Those who keep a balance at all times find that they perform much better and are happier in their personal lives. If they have a bad personal life, the owner would have increased and too much on their minds.


Cite this paper

Small Business Ownership. (2021, Aug 23). Retrieved from https://samploon.com/small-business-ownership/

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