Small Business Literature review - Research Paper Example

Government defines small business according to the employees, total capital and market expansion etc. “The concept of small scale business has been changing time to time” and “definition of scale business is rather ambiguous (Basu, 1998, p.104). The complexities in large scale business are greater than in small scale. However, managing a small business is as challenging as maintaining a large scale business as there are many limitations in small business. This paper will attempt to present literature review of small business management.

The entire explanation and analyses will be divided into several sections and each section will focus on particular area of small business. The first two sections will analyse major pitfall and drawbacks in small business and general mistakes of small business owners. The section three will discuss effective methods and steps in starting a small business. Next section will focus on effectiveness and profitability of small business for used appliances and sales store. The last section will point out the importance of Hispanic community for small business.

Finally, the conclusion will point out the major findings of the entire discussions and analyses. Many a time the entrepreneurs start a new business with great enthusiasm but overlook some minor issues that results in major pitfalls. With time these pitfalls adversely affect the business and the newly started fails to achieve its goal. Therefore, the time and the labour put in developing the business goes in vain. If the entrepreneurs can identify the common pitfalls before hand, he or she can be more attentive and the possibility of committing common mistakes can be minimised.

Some of the common pitfalls related to the SMEs are discussed below. Understanding the amount of money and time it will take to start the business: While developing the business plan, the entrepreneur often makes some assumptions which may