In business the economy refers to the process by which a country operates by providing various products and services required for the satisfaction of consumer needs. The economy has three interrelated elements: government, private industry, and the social system. The government plays an active role in the economy by controlling the distribution of resources, acting on behalf of the public, regulating private industry, and providing tax incentives. The central economic structure of a country consists of the following sections: the government, central and local government, private industry, and the social sector. All these parts interact to influence the economy.
The key to economic development is promoting small businesses. Small businesses are those businesses that employ fewer employees and have a limited number of outlets. They may employ only one person or a small number of workers. In either case, small businesses play a significant role in the economy. Many small entrepreneurs start their own business to develop and expand their personal wealth.
A small business can be easily started by a person who possesses the resources, such as a computer with a word processor, a small amount of funds, or a small amount of time. This type of business is also commonly called “home-based businesses”. With many home-based businesses, labor costs are lower since employees can work at home. For instance, if a person wishes to become a housekeeper, then she does not have to travel to an office and she can cook and clean for herself. On the other hand, this can be more expensive since it involves hiring employees.
Home-based entrepreneur must consider several factors before starting a small business. These include the availability of a good capital supply, access to necessary licenses, and favorable conditions in the business market. There are many small firms that were established before they received financial support from any source. However, most new small businesses use bank loans as their main source of finance.
As more people rely on computers for various tasks, there has been a rising need for computer programmers and technicians. In addition, many home-based small businesses utilize social media programs such as Facebook and Twitter for marketing purposes. It is possible to leverage social media programs by using Facebook and Twitter to advertise a business, increase awareness of products and services, and to create customer loyalty. For social media, entrepreneurs should consider programs that automate the tasks involved in social media marketing. Such programs include email campaigns, targeted promotions, blogging, content publishing, and mobile marketing.
There are also programs that can assist small businesses with inventory management and accounting. The programs can generate invoices and keep track of sales, inventories, and receipts. Small businesses may also benefit from programs that help them manage their customers’ information. For example, some programs allow an entrepreneur to keep track of customer information, such as names and addresses. This information allows the small business owner to easily contact previous customers or send email coupons.
A new business can also benefit from venture capital. Venture capital represents the money provided by angel investors and other private lenders to new ventures. Entrepreneurs may obtain venture capital through angel investors, banks, or other investors. Venture capital can be particularly useful for new businesses that have not reached break-even or profit and are unable to obtain credit from existing lending institutions.
Of course, there are several programs that an entrepreneur can implement on their own. However, most entrepreneurs find that it is much easier to take advantage of existing programs. When a business breaks even or begins to make a profit, entrepreneurs should consider taking control of the problem by exploring other business possibilities. These programs are often available from small business administration programs, which are offered by most state government agencies. The Small Business Administration offers several programs that fit particular needs of the small business community.