Question

Discuss the importance of small business to the American economy and summarize the major causes of small-business failure.

Answer 1

Solution -

Importance

More personalized customer service

Employment opportunities (60-80% of new jobs are in small businesses)

The business is not checked first

More personalized customer service

The business is not checked first

Causes of failure

Business is not checked first

Under processing / over processing

Reduce the time required to create the market

Get started with too low capitalization

Start with more capital and use it carefully

No industry or market / experience

Borrow money without planning to pay back money

Do not work on freedom or work

Delay and do not allow for unexpected expenses

Make lots of purchases on credit

Increase the credit too freely

Very fast credit extension

Failure to put a complete / accurate entry does not fail

Habits of personal wastage

I do not understand the business cycle

Tax, insurance etc. Forget about

Do not work on freedom or work