Small Business Success – Why a Strong Economy Creates the Best Small Business Start Ups
In the business world today, it is no longer business as usual. New business models emerge every day – new business opportunities that promise to take companies to whole new levels of growth. In this paper explores the phenomenon of home based business owners engaging in a financial transaction via an online portal. The paper also examines how these same home based business owners use this same portal to finance their business activities.
Home-based businesses are growing very rapidly in number across the country. In fact in some states such as Montana home-based businesses make up more than half of the total small business population. As these home businesses expand, companies will be able to save costs that would normally be spent on traditional modes of business. This paper explores how home-based businesses are financed by applying the principles of economics to the online context.
Economics is a science that studies how people, firms or institutions make decisions. These decisions are made in the context of the environment that surrounds them. The same is true for small businesses. Economists are particularly interested in what effects various changes in the environment have on organizations. They are particularly interested in understanding why small businesses fail to grow strong and succeed in a robust economic environment. The failure of small businesses to flourish in a strong economy suggests that something is not working.
Business news is another area of economics that drives the discussion. When there is a state of the economy that is viewed negatively, business news is scrutinized closely. When small business news is noted, the public debate whether the state of the economy warrants taking action. Many argue that small businesses are essential to a healthy economy. Other citizens are fearful that small business will be destroyed if the state of the economy gets worse. Regardless of which side of the debate you fall on, the media coverage can impact how you react to a given event.
Another popular topic of business discussion is the threat of a pandemic. Whether it’s caused by the bird flu or swine flu, the potential for a pandemic is always discussed. Many people are concerned about the ability of a pandemic to effect their business. Should small businesses be particularly effected if a pandemic were to occur? The answer to this question may vary from business to business depending on the industry they operate in and how severe the pandemic would be.
In recent years, business concerns about capital access have become increasingly important. Capital is critical for many businesses to remain viable. Capital is expensive to acquire and can prevent small business owners from being able to afford supplies that they need to stay competitive. Capital is especially an issue for new businesses that have not established any kind of business finance structure. Capital also becomes an issue if the business is not profitable. Without access to capital, many businesses will fail.
Home based business is a growing segment of the overall business pie. Home based businesses are much more convenient than traditional businesses and provide small business owners with the flexibility and convenience of working from the comfort of home. There are many advantages to home based business but also many disadvantages. Many small businesses are started by people who are looking to bring an income into their lives but before they can realize their full potential, they must realize that there are risks involved in home based business. There are many books and articles available to help business owners learn all they can about home based business and how to avoid the common pitfalls.
A strong economy is crucial for ensuring the success of small business. Many small businesses rely heavily on imported goods because of the availability of cheap labor in other countries. In a weak economy, an import cost of five dollars can make the difference between success and failure of a business. If you own a small business, do your research before investing in anything. It will be one of the best investments you can make for the future.