How can US Small business survive in a Global Economy - Research Proposal Example

However, there are substantial uncertainties regarding the level of management within this sector, with US policy-makers indicating that there are specific flaws in innovation (Katz & Green, 2011), lack of economic insight, entrepreneurial talent, practical understanding, and human resource management. According to Johnson and Turner (2010), the early phases are of significant value for the small business as these a very high failure rate. Keeping in view this high failure rate in the small business sector, it seems essential to examine the aspects, characteristics, or management skills that are necessary to facilitate the small business to survive and progress in global economy. . ituational Analysis It is understandable that as the global economy goes on towards more and more integration due to progress of communications approaches, growth in developing nations, and decline in barriers for cross-country business, a few of the best prospects for small businesses will draw by operating within the global market.

Within the developed as well as developing nations around the globe, US policy makers at all levels have accepted the fact that small businesses are turning out to be more and more essential with respect to employment, creation of wealth and the improvement in innovation. Alternatively, there are significant reservations regarding the excellence of management within this sector, with policy makers telling that there are specific weak spots in improvement, dire need of economic insight, advertising, entrepreneurial talent, understanding of market, and human resource management (Gupta, 2008).

Therefore, a number of small businesses do not get to their complete potential and fail to survive, causing lost employments and capital for their area in which they are situated. Earlier research proved that there are four decisive phases within the life of a small business where the phases are decided by the time-span the business has been functioning. The estimated duration of every phase is as follows: first phase is the commencing point and is approximately three years in length. Subsequently, second phase is the development period and is four to six years in length; third phase is the established part and it is somewhere between six to eight years in length; and fourth phase is the constancy period having more than nine years of duration.

Linked with all of these phases is a special set of business traits, tests, decision-making aptitude, and