A Small Business Is Typically Sole Prop Essay

Submitted By ariadne365
Words: 323
Pages: 2

A small business is typically sole proprietorships, partnerships or privately owned corporations, and has fewer than 15 employees. They are not only seen as a main driver for generating employment, they also promote innovation, put business ideas into practice, foster Regional economic integration, and maintain social stability. In Australia small businesses play an important role in the economy due to their involvement in production and employment. Thus, individuals start a small business because they are pursuing control of their life; they have a product/service, capital, location or a business plan.

A proprietor, is usually seeking to take control of their destiny and some of the motivations could be money, no more commuting/ working from home, freedom/flexibility, innovation, being your own boss, and challenge. But, operating a small business is not just about the advantages, it is also about having technical skills, industry expertise, management skills, finance and a long-term goal to grow and be successful.

The proprietor should have a product/service, research untaken to analyse if the product is feasible, how to protect the product, the market place for the product, the skills required, the competitors, and the difference this product will make to the market and the financial capacity.

The form of ownership, whether sole proprietorship, partnership, etc. should be established. The business should be registered with Australian Securities and Investment…