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Small-Business Opportunities Available Today - Essay Example

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Small-Business Opportunities Available Today

There are certain types of difficulties faced by such businesses due to their small size. One of the most common reasons for bankruptcy is undercapitalization. This is mainly due to the bogus arrangement and not the financial circumstances; meaning that any business should have enough amount of money to run that business and a certain criteria is set up. If the required isn't done, then the company can suffer from bankruptcy. Along with the fact of having good amount of capital, the proprietor of the small business should have a good knowledge of gross margin, which are "sales minus variable costs." In order to work appropriately and efficiently, the business is required to achieve a standard of sales having gross margin surpass the "fixed costs."
In United States, few of the important small business proprietors are in the field of "insurance costs, rising energy costs and taxes." While in United Kingdom and Australia, small business possessors are more into the field "with excessive governmental red tape."
It can be a complicated task for a fresh and developing business to gain trust of customers. To overcome this complication, some associations like Better Business Bureau and the International Charter are proposing Small Business Certification, "which certifies the quality of the services and goods produced and can encourage new and larger customers."
Comparing and Contrasting Two Small Business Firms
The two small business companies which will be compared in this report are two different finance corporations running in United States. The first one is Southwestern Business Financing Corporation, operating in State of Arizona and Contiguous States. The second one is Chesapeake Business Finance Corporation operating in Kent and Sussex Counties.
About the Firms
Southwestern Business Financing Cooperation is a classified, non-profit company that gives "small businesses with long-term loans for owner-occupied fixed assets." This company is one of the two corporations of Arizona which is endorsed by the U.S Small Business Administration to create the SBA 504 loan to small businesses for construction of gigantic utensils from "$ 125,000 to $ 10,000,000." This company offers a "long-term, fixed-rate financing" with a decreased down payment. From the time when it was founded, SBFC has financed the purchase or building of over $500 million of buildings for small businesses. (
Chesapeake Busines ...Show more


A small business can be described as such type of business which has comparatively a minute amount of employees working in it. Officially if we look at it, then a minute number can vary according to country or industry, but a universal minute size can be regarded as having fewer than 100 members of staff…
Author : ekuphal
Small-Business Opportunities Available Today essay example
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