The Small Business

Paper Summary:

This paper discusses the small business sector, an essential component to economic progress in nations throughout the world. The paper presents the theory of small business and the definition of a small business.The advantages and disadvantages of small businesses are outlined in the paper. In addition, the paper explores the small business plan and the development of such a plan.

From the Paper:

"Small business has always existed in the American Economy in some form. Early settlers traded goods with Native Americans and settlers conducted business with one another. However, the concept of small business came to the forefront in 1953 with the establishment of the Small Business Act and the formation of the small business administration (Anglund 2000). The small business act and the formation of the SBA came in the post war era and proved beneficial to the American Economy (Anglund 2000). Legislators believed that small business would be "a source of competition, opportunity, freedom, and democracy (Anglund 2000)." Additionally, the theory of small business was rooted in the concept of free competition. Auglund (2000) explains that "The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation. Such security and well- being cannot be realized unless the actual and potential capacity of small business is encouraged and developed. It is the declared policy of the Congress that the Government should aid, counsel, assist and protect insofar as possible the interests of small business concerns in order to preserve free competitive enterprise (Auglund 2000)."

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