Daily Babbler

A small business is a small scale business operation run independently with a limited number of employees, usually under 100. Small businesses range from shops and bookstores to restaurants, and have many benefits. The cost of starting a small business is rather low, and a small business owner has the benefit of getting to know his customer base and employees intimately. This allows him to increase business performance by adapting the business offerings quickly to the needs and desires of customers. The proprietor of a small business can also be his own boss, and gets to enjoy all the fruits of his work. He has total independence in decision making and risk taking. Small businesses can also get financial assistance from many governmental and non-governmental sources.

Small businesses also face many challenges. Most small businesses fail in their first 5 years. Prime among the reasons for this phenomenon is the lack of capital to fund the continuing operations of the small business, and the difficulty in obtaining further funding. Another challenge is that many individuals starting small businesses are people with technical skills in the field they choose, who automatically assume that their business will be successful because of their technical expertise. They often realize the hard way that running a business also requires many business skills such as marketing, leadership and management skills and the ability to properly plan and achieve business objectives. The field of small business coaching has developed in recent years to help entrepreneurs through this hurdle and guide them towards business process improvement.