Facts
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Small business ownership comprises 90% of all business in the United States. It is the fastest growing area in terms of Business ownership. Entrepreneurs enjoy freedom in decision making, hours of operation, profit goals, and leadership. Small businesses generate over 1/3 of the Gross National Product. The Gross National Product is the total of all goods and services traded in the United States. Two people in 70% of all households will be working in the near future. The value of good communication skills in business cannot be overstated. All business activity involves speaking, listening, and reading or writing to some extent. The steps in the formal decision making process include: identifying the problem or opportunity, list solutions or options, evaluate alternatives, choose solution, act, and get feedback. This process is also used by business owners when evaluating a decision. Small businesses are currently creating 90% of new jobs in the United States. Consumerism is the emphasis providing to customers' products and services that are safe, reliable, and honestly advertised. A capitalist is the individual, or group of individuals, who supplies the money to get the enterprise going. Equity capital is the term used for money that is raised when stocks are sold in a corporation. A reward of entrepreneurship is equity build-up. An increase in the number of people in the workforce promotes a country's economic growth. Capital includes the equipment, factories, tools, and other goods needed to produce a product. It also includes the money used to buy these things. The market value of goods and services is dependant on their demand by consumers. *The American Enterprise System allows a high level of economic and personal freedom. People have individual liberty and the right to own property. They also have the right to do what they wish with their property. Profit is the cost of doing business over and above current expenses. A business that makes a profit is able to keep operating, to innovate, to seek new markets, and to expand with new machinery and plants. The need for accumulated knowledge and acquired skills by individuals has increased in today's technological world. This is known as the need for human capital. Entreprenuership is the process of getting into and operating your own business. An entrepreneur is a person who undertakes the organization and ownership of a business with the intent of making a profit. He or she assumes the risks and responsibilities that go along with this venture. Accountants live by what is called the "accounting equation" on which a balance sheet is based: Assets = Liabilities + Capital |