12 November 2012
Gifted English IV
Ms. Krista Ashford
Small Business Owner What is a small business? The United States Small Business Administration describe the term "small business" as a business that is independently owned and operated, is organized for profit, and is not dominant in its field. Standard eligibility for size of an industry is based on the number of employees for the proceeding twelve months on sales volume averaged over a three-year period. Small businesses are practiced all around the world, have been around for ages, are known for risks, glory, and have major issues that can ruin someone pursuing their dream or idea.
Small businesses have been around for thousands of years. The Roman Republics' 'Societas publicanorum' were individual companies that delt and shared particulae with the respective government. Later, around 1250 AD in France at Toulouse, ninety-six shares of the Societe de Moulins du Bazade, or Bazada Milling Company were traded at a value that depended on the profitability of the mills the Society owned.
Small businesses have been the backbone of the American society since the day America was founded, producing and establishing household names such as Winchester, the gunsmith company, and Jim Bean, a whiskey company. Companies like these and many more are still in action today, but they didn't always start out with such a profitable business. All of the great corporations in our modern day society, such as McDonalds, Nike, and Marvel, started at square one; getting on their feet. In the United States, small business can be started at a low rate and can become a part-time job for those in search for another source of monetary gain. Small businesses provide, to those whom own said business, with opportunities, power, and ultimately their own professions outcome. The business owners are able to learn and experience entrepreneurship first hand, as it affects their business. This also allows the owner(s) to make their decisions, take their own risks, and relish in the results of their endeavors. Opposed to a larger corporation, small business have the ability to function on a more intimate level with the clients or customers, creating a mature business experience. For a company to break even, sales must reach a level of sales where the contribution margin, sales minus variable cost, is at least equal to the fixed cost. This principle is known as the "Common Rule", for example; An entrepreneur should have access to a sum of money that is at least equal to prospect. The entrepreneur thinks he will generate $100,000 in revenues