Small Business Owners of America: Pros and Cons

It is common rhetoric that small business’ are the backbone of the American economy. The small business owners of America are always glorified as patriotic heroes. Additionally to being the staple of the the “American dream”, small business are, collectively, the largest employer in the United States. Unfortunately, their peak has passed. Whereas before maintaining a family enterprise was desired, and almost, assured hope for a small success there is dubiousness now. Every new entrepreneur enters an oversaturated market dominated by large corporations and economies of scale. Persevering in this environment is difficult, and your personal strategy must conform to this difficulty.

In this post we will give an evaluation of pros and cons regarding operating a small business. To give context for our evaluation we will present the judicial and semantic factors that feed into operating a small business. We will provide a general (Federal) definition for a small business, and we will also mention states like California, New York, and Florida, specifically.

SME: How and What?

Federal Level

The formal notion guiding family operations is that of the Small-and-Medium Enterprises (or SME for short). These entities are in turn supervised by the Industry Trade Advisory Committees, particularly by ITAC 9. This committee is located in Washington DC, as a part of the Office of Finance.

Itac 9 also has representations in all the states and territories which help SME operators with taxation, registration, employment and other issues. Furthermore, they also provide interesting statistics regarding the behavior of the market for enterprises. In these data you can see which sectors are striving and which are failing, geographical demand for goods and services. It is also worth considering that now the more successful are the export-oriented SMEs.

In general, the hardest issues in becoming an SME is rectifying the status of such. There are generic guidelines on what it means to be an SME, however the particularities change according to the industry sector, trade partners and location of office. Commonly States have varying restrictions on small business. Hence, an SME must be registered in accordance with the State of registration and operation of it.

California

California was a haven for SMEs a while back. California has relatively low taxes, significant subsidies, and are less prone to employment crack-downs in comparison with some other states. There was a boom in small business in the technology sector here in the 2000’s and 2010’s. Now, the market is dense and very competitive. The rent of offices is extremely high, and the service industry is thriving. If you wish to open an SME here beware that you will, most likely, never operate at an above-marginal profit. However, given that you offer a successful business plan your profits will be stable. Furthermore, there is a plethora of workforce in the area, hence you will not be under-staffed. Most promising are the areas of local services in perishable goods transportation and re-sail.

Florida

Another sunny state- Florida is a great place for enterprises. Firms here enjoy the benefit of being located near industrial ports with high traffic levels. Furthermore, Florida is lackluster on its regulation hence the levels of taxation, registration fees and involvement of federal and state agencies are low. Thus it is easy to make a startup here. However, be aware that Florida suffers from high levels of crime, including various corporate misbehavior.

On the other hand, Florida has been often credited as the best place for a small start-up. the common reasons cited are- abundance of educated professionals, a large and growing population with increasing demands, and, relatively, low density of competition in most sectors.

New York

New York is probably the most liberal state in USA. This applies in equal part to the small entry-levels for enterprises and severe regulation of these enterprises. In fact, New York has the highest numbers of SME registrations and SMEs foreclosure in the country. this means that opening a business here is extremely risky.

Most people operating here are certain that you need a very particular niche for a business for it to last. As a booming hub for innovation New York offers an increasingly diversified market for SMEs to enter. Just be sure when you enter it every little piece of papers is appropriately signed and archived. This means that in New York having lawyer on your side is absolutely necessary.

Evaluation

At the current moment the future of the SME industry is not certain. Large corporations and new legislation make maintaining a small business difficult due to increased maintenance costs for lawyers and accountants. However, there are significant government subsidies and demand for services provided by family enterprises. Beware that you should clearly markout you business strategy and make sure you scrupulous about marketing and hiring. Do not be hesitant to release the so-called “white papers” for your organization. These papers are a source of information about your business strategy, technology, and innovations. They are written as pamphlets and articles. If you have a comprehension of your business but are not in a position to actually compose the white paper considering cooperating with an affordable essay writing service.

Depending on the industry you choose there are different judicial notions and paths to consider. If you have the liberty to choose where to register you SME be wise with that choice. Certain states have very high taxes, certain states have none at all. Choose wisely.