Brandi Norfleet Week 2- DB 7/20/2012 Characteristics of a small business include a company that is owned and operated independently, has

less than 500 employees, and is not monopolistic in its industry. According to the Small Business Administration (SBA), for a company to be classified as a small business it must meet the size standard guidelines. The standards are set by NAICS codes and are based on number of employees or revenues (Juul, 2011). Many small business operations are limited to a local geographic area or region, and do not have international exposure. Small business owners find it difficult to have access to capital, and therefore use collateral to secure loans. Small businesses typically own their facilities and equipment outright.

On Aug. 17, 2010, at a roundtable discussion in Seattle, President Barack Obama stated that small businesses are the backbone of our economy and the cornerstones of our communities (Sabochik, 2010). There are a number of reasons why small business is important in the U.S. economy including job creation and contributions to larger business. According to the Small Business Administration (SBA), small businesses in the USA represent over 98% of all employer firms, and employ over 50% of all private sector employees (2009) . Small businesses generate 60-80% of new jobs each year. When individuals are laid off from jobs with larger companies, it is small business companies who then go on to employ these displaced workers. Small businesses collectively account for half of the United States non-farm private gross domestic product (2009). They also supply big businesses with raw materials and specialized services, and sell the products of larger companies. Most small business companies are in the services and retail industries and contribute to the economy in this way.

I would like to have my own accounting firm as that is my field of study here at CTU. I would use my knowledge and education to serve my local community in this capacity. I would choose to setup a website for my business so that I can broaden my client base with an online presence. I would like for the business to be a sole proprietorship, but feel that perhaps a partnership would be better for my company starting out.

References Juul, I. (2011, January 25). Characteristics of a small business . Examiner. Retrieved July 19, 2012, from http://www.examiner.com/article/characteristics-of-a-small-business Sabochik, K. (2010, January 17). Small Businesses Are the Backbone of Our Economy and the Cornerstones of Our Communities . The White House. Retrieved July 21, 2012, from http://www.whitehouse.gov/blog/2010/08/17/small-businesses-are-backbone-oureconomy-and-cornerstones-our-communities The Small Business Economy: A Report to the President. (2009). U.S. Small Business Administration. Retrieved July 21, 2012, from www.sba.gov/advo/research/sb_econ2009.pdf