The role of small businesses in economic growth
Small businesses are a major building block to our nation’s economy. Statistical evidence has shown that an estimated 65 percent of the employment opportunities in our American nation are provided by the small business sector. It is also to be realized that most of the innovations in our nation have been from small business enterprises. Just to be understood here is the fact that innovation is the most important factor in ensuring sustainable economic growth in any nation. It is in fact due to this reason that the federal government has put in place policies which strive to encourage innovation in the society. Additionally, it should be understood that sustainable economic growth should be accompanied with increased employment opportunities for the citizens. Small business enterprises have sufficiently proved to be reliable in creating employment opportunities to the citizens of the nation. It is thus clear that the existence of small business investment s is a great boost to the realization of sustainable economic growth in our nation. Indeed, history has it that the economy of any nation dependent on the small business investments as it is this investments which under viable conditions can grow into big multinational corporations (Sawai, Odaka, 1999).
It is in the interest of this research that the author of this paper gives a critical look at the role that is played by small businesses in the economic growth of the US nation as well as identifying its shortcomings. The paper also talks of the necessary measures that the federal should put in place for assisting and sustaining small businesses in our society.
Importance of small business investment to the economic growth in our American nation
Small businesses are a main source of income to the investor. It is in a capitalistic economy like ours that each and every individual should be out to find his or her own means of leading a sustainable independent life. It is therefore based on this argument true that small scale investors are important to our economy in that they reduce the number of dependents in the society (Anglund, 2002). Such investments should not be seen just as a source of income to the owners but also as a reason behind the sustainability of our human community as the investor can sustain his or her family and even initiate other goodwill projects in the community.
It is also to be noted here that small scale business investments in our nation are a great source of employment for many of the American citizens (U.S. department of State, 2009). Just to be stated is the fact that the economic growth of any nation is mainly dependent on the levels of employment in the nation as well as the living standards of its citizens. It is therefore in this reasoning that small businesses are greatly important as a source of employment to the citizens of this nation. It has evidently been proved from statistical evidence that of the whole American population, over 65 percent of the employment opportunities are provided by the small business sector (U.S. Department of State, 2009). This means that our small business investment sector is a major drive to the improving the living standards of our citizens through creation of employment opportunities.
Economic growth is a factor of the overall contribution to the government through taxation schemes. It is in the law that any investment and/or individual in our American society should contribute in support of the government in proportion to their income. Therefore, it is clear that with the many small businesses investments in the American nation, the level of contribution in support of the government is greatly improved. Such boosts of the revenue collections of the government lead to increased execution of more citizen friendly projects by the government thus improving the overall development levels of the nation. It is indeed true that small business investments if protected and encouraged could give a solution to the economic recovery strategies our American government is involved in.
Statistical information has evidently proved that small businesses are the main driving force to the innovative development in our nations (Anglund, 2002). As common knowledge is clear to all, innovative thoughts and acts are the most fundamental element that is necessary in ensuring a sustainable economic growth in any nation. Given the competitive nature of our modern markets, it is only by striving to produce customer tailored products that market can be ensured in the society. It should here be noted that sustainable market for a business is quite useful to our economic growth (Lunt, 2001). This is because such developments will ensure sustainable job creation to the citizens, assured government tax contribution and sustainable availability of goods and services to the nation’s population. It is owing to this importance of innovation in ensuring sustainable economic growth that small business investments should be encouraged and protected from unnecessary threats by the government (Edmiston, 2007).
Government and small business investments
The American government appreciates the importance of small businesses in its sustainable economic growth. This is evidently seen in its tax schemes and incentive policies in favor of small business investors. It should however be realized that much is still needed to ensure the certainty of small businesses survival in the competitive market witnessed in our nation. It has been a common problem that many small businesses tend to loose in the marketplace due to the unfair and discriminative practices of multinational corporations (Bannock, 2005). It is therefore in the interest of the future of this nation and its economic prosperity that the government should put in place rules and regulations to safeguard small businesses from the anticompetitive practices of other highly established competitors in the marketplace.
Still to be noted is the fact the government’s assistance through incentives and tax reductions for small business investors are far behind the levels acceptable for realizing sustainable economic growth in our nation. It is here clear that the small business sector is the leading provider of employment in America. Owing to this reason, it should be reasonably recommended that the American nation should increase its incentives for small business investments as well as reduce the tax contributions from such investments. It is only through such acts that the sustainability of small businesses in our economy could be realized.
It is clear that small businesses are a major building block to our nation’s economy. It is this economic sector of our nation that provides for the highest number of employment to the citizens. It is therefore for the good of our nation’s future that better policies should be put in place to encourage and protect this economic sector. Such policies should safeguard the small scale investor from anticompetitive practices of big companies in the marketplace. It should also seek to address the question of sustainable taxation and investment invectives for such investments.
It is in the interest of this research that the author of this paper gives a critical look at the role that is played by small businesses in the economic growth of the US nation as well as identifying its shortcomings. The paper also talks of the necessary measures that the federal should put in place for assisting and sustaining small businesses in our society.
Importance of small business investment to the economic growth in our American nation
Small businesses are a main source of income to the investor. It is in a capitalistic economy like ours that each and every individual should be out to find his or her own means of leading a sustainable independent life. It is therefore based on this argument true that small scale investors are important to our economy in that they reduce the number of dependents in the society (Anglund, 2002). Such investments should not be seen just as a source of income to the owners but also as a reason behind the sustainability of our human community as the investor can sustain his or her family and even initiate other goodwill projects in the community.
It is also to be noted here that small scale business investments in our nation are a great source of employment for many of the American citizens (U.S. department of State, 2009). Just to be stated is the fact that the economic growth of any nation is mainly dependent on the levels of employment in the nation as well as the living standards of its citizens. It is therefore in this reasoning that small businesses are greatly important as a source of employment to the citizens of this nation. It has evidently been proved from statistical evidence that of the whole American population, over 65 percent of the employment opportunities are provided by the small business sector (U.S. Department of State, 2009). This means that our small business investment sector is a major drive to the improving the living standards of our citizens through creation of employment opportunities.
Economic growth is a factor of the overall contribution to the government through taxation schemes. It is in the law that any investment and/or individual in our American society should contribute in support of the government in proportion to their income. Therefore, it is clear that with the many small businesses investments in the American nation, the level of contribution in support of the government is greatly improved. Such boosts of the revenue collections of the government lead to increased execution of more citizen friendly projects by the government thus improving the overall development levels of the nation. It is indeed true that small business investments if protected and encouraged could give a solution to the economic recovery strategies our American government is involved in.
Statistical information has evidently proved that small businesses are the main driving force to the innovative development in our nations (Anglund, 2002). As common knowledge is clear to all, innovative thoughts and acts are the most fundamental element that is necessary in ensuring a sustainable economic growth in any nation. Given the competitive nature of our modern markets, it is only by striving to produce customer tailored products that market can be ensured in the society. It should here be noted that sustainable market for a business is quite useful to our economic growth (Lunt, 2001). This is because such developments will ensure sustainable job creation to the citizens, assured government tax contribution and sustainable availability of goods and services to the nation’s population. It is owing to this importance of innovation in ensuring sustainable economic growth that small business investments should be encouraged and protected from unnecessary threats by the government (Edmiston, 2007).
Government and small business investments
The American government appreciates the importance of small businesses in its sustainable economic growth. This is evidently seen in its tax schemes and incentive policies in favor of small business investors. It should however be realized that much is still needed to ensure the certainty of small businesses survival in the competitive market witnessed in our nation. It has been a common problem that many small businesses tend to loose in the marketplace due to the unfair and discriminative practices of multinational corporations (Bannock, 2005). It is therefore in the interest of the future of this nation and its economic prosperity that the government should put in place rules and regulations to safeguard small businesses from the anticompetitive practices of other highly established competitors in the marketplace.
Still to be noted is the fact the government’s assistance through incentives and tax reductions for small business investors are far behind the levels acceptable for realizing sustainable economic growth in our nation. It is here clear that the small business sector is the leading provider of employment in America. Owing to this reason, it should be reasonably recommended that the American nation should increase its incentives for small business investments as well as reduce the tax contributions from such investments. It is only through such acts that the sustainability of small businesses in our economy could be realized.
It is clear that small businesses are a major building block to our nation’s economy. It is this economic sector of our nation that provides for the highest number of employment to the citizens. It is therefore for the good of our nation’s future that better policies should be put in place to encourage and protect this economic sector. Such policies should safeguard the small scale investor from anticompetitive practices of big companies in the marketplace. It should also seek to address the question of sustainable taxation and investment invectives for such investments.
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