6-2 Small business basics

common small business problems

1.Inability to pay expenses 2.The owner may also get tired of the hours and hard work

reasons for failure

1.Not keeping antiquate records 2.Not having enough start- up money 3.Lack of management experience 4.Lack of experience with the type of business 5.Not controlling operating expenses 6.Poor location for the business 7.Failure to manage credit offered to customers

4 descriptions of a small business

1.The owner is usually the manager 2.It operate in one or very few locations 3.It typically serves a small market 4.It is not dominant in its field

Small Business Administration

a government agency that helps small business owners develop business plans and obtain financing and other support for their companies

small business

an independent business with fewer than 500 employees