Small Businesses in America - Essay Example

In the past two years, the number of small businesses has increased steadily by 16%. This is attributable to the laws and regulations in the economic sectors. The government is awarding loans at exceptionally low-interest rates to encourage investment in small and medium enterprises. In the state of the nation address by the president, there were assurances to reduce the cost of doing business so that more individuals can venture into small businesses.

Summary
The performance of small businesses in America is incredibly excellent. This is because of the affordability and availability of goods and services by entrepreneurs. The impact of these businesses is exceedingly significant on the entire Americas economy. Along with the above point, small businesses are doing exceedingly well because of their capacity to acclimatize to the varying trends in the market. In America, most of the exporters are small and medium businesses. The businesses provide massive employment opportunities and offer affordable goods and services to customers. The quality of goods and services produced by the small businesses is high vis a vee those produced by the large firms. This explains why the products are doing excellent in the market. The government has reduced the cost of licensing small businesses so that they can motivate people and make it an alternative means of employment and investment.

Analysis
Small and medium enterprises in America account for 52% of the workforce in the country. Small businesses are increasing by 2%, and the employment rate is increasing by 6%. In 2012, 56% of the net export in America was accounted for by small and medium enterprises. This is because they produce goods that are affordable to most people outside America. 38% of America’s gross domestic product is contributed by small businesses. The small business administration anticipates that small businesses will grow by approximately 26% by the year 2017.

Conclusion
In a nutshell, the performance of small businesses is dreadfully significant in the economy of America. It has enabled many individuals to secure employment and get quality goods and services from the same. Government support of small enterprises should be encouraged as this has motivated most people to venture into businesses. The laws and regulations that are jeopardizing the success of small businesses should be amicably solved to encourage small business entrepreneurs. Read More