Why do many small businesses fail Research Paper

Why do many small businesses fail - Research Paper Example From these Small Businesses are considered to be the most important economical contributors with respect to their social impact, and employment and innovation opportunities. In the US especially the perception of the small business owner is tied inexplicably to the ideals of hard work leading to success and the importance of the individual. Before verifying any such claims or talking in-depth about the problems and opportunities present for this sector, one must first define ‘Small Business’. While researchers provide their own specific parameters and variables for defining the term â€Å"There is no inherent definition of a "small" business.† (Priest 2003). For the US market, any business having 500 or less employees is considered a small business, with a significant amount of these having less than 20 workers. But the advantages associated with small businesses in general like more flexibility, an innovative environment, enhancing of entrepreneurial skills etc c annot be fully realized even in the relatively smaller size of 500 workers. For the purpose of this paper, the following description coined by the Wiltshire Committee (Australia) will be considered the standard for a small business â€Å"A business in which one or two persons are required to make all the critical management decisions: finance, accounting, personnel, purchasing, processing or servicing, marketing, selling, without the aid of internal specialists and with specific knowledge in only one or two functional areas† (1971). The decision about the ideal firm size in the economy is usually determined by the relationship between managerial efficiencies (costs) and market transaction costs- if a small person team can perform efficiently in a small market while keeping their transaction costs low the small business model will be suitable to them. From an academic point of view claims about the social and economic importance have to be empirically proved before any further discussion can be built upon them. At this time, there are no clear normative grounds which substantiate the claims about the significant contribution of Small businesses to overall revenue and employment generation (Priest, 2003); at the most the contributions are equal to that provided by large conglomerates and corporations. However, the rate of failure of small businesses is still a cause of concern for academics and professionals alike because there are some specific proven benefits associated with small businesses with cannot be provided by large firms working on economies of scale and mass production. These pertain to particularized customer demands in small demand markets; a small size market with demands for personalization can only be met by smaller businesses and the society benefits from the increased welfare provided by choice. Failure of the Small business is an accepted phenomenon in the market. In a study done by  Inc.  magazine and the National Business Incubat or Association (NBIA) Statistics it was shown that  80% of new businesses fail within their first year. According to the Small Business Association In 2002, an estimated 550,100 new businesses were established in the U.S., while an estimated 584,000 closed their doors for good bringing the growth rate of small businesses to negative. From those that survive the first year, 8 out of 10 new businesses fail within the first three years. (Mason, 2012). This trend is not associated with US alone; studies in diverse nations like South Africa, Australia, UK, South East Asia have shown the same. The reasons behind these failures can be broadly categorized into External and Internal factors. External factors are those which can only be

Theory of Good by Wilhelm Leibniz Essay Example | Topics and Well Written Essays - 1750 words

Theory of Good by Wilhelm Leibniz - Essay Example Leibniz in his lifetime proposed theories relating to God and made a derivation from every theory he proposed. He is also known to be the father of calculus and the basic founder of the technology known as computer. Leibniz in his lifetime proposed a theory known as 'the theory of good'. This theory gives the basic facts about goodness while relating it to the God. Leibniz put in his own perceptions and came out with the theory of good which is now famously applied by many people. This theory has come into many criticisms; however some people are still in the favor of this theory. This article would further discuss the theory of good according to the facts given in by Leibniz and would give in a conclusion after assessing the theory. One of the very important theories Leibniz put in was the theory of good which was the basis for the ethics of Leibniz. This theory revolved around the basis of goodness and how it was affected. This theory was again laid upon three basic principles which were according to Leibniz's words hedonism, Platonism and perfectionism. Platonism basically signifies that goodness is correlated to reality, hedonism relates good to satisfaction and gratification whereas perfectionism implies to fastidiousness that is one should try to achieve precision in one's character. But with all these three principles there is a co existing form of malevolence. With the abstract good there is the wrong associated when there is defiance of reality. With the ethical good there is malevolence of bad and evil. And in the hedonism which is then related to the evil of pain. In constructing his theory of good and relating abstract good with abstract malevolence Leibniz has taken assistance from the work of Augustine, Boethius, Plotinus and in the theory of Plato Leibniz has given a clear cut view in his theories that everyone and everything is not equally perfect. He states that it is only God who has immeasurable and unbounded perfection and faultlessness. God is the creator of everything and he has given his creations varying amounts of perfection. To give his creations complete exactness and divinity like Himself would be like the creation of another God by Him and this is not how the universe has been based. The universe has been based on His principles and thus with His creations God has given everyone his own boundaries and limitations that are to be followed by everyone. This clearly means that everyone is not equally perfect and thus Leibniz is trying to explain that precision and flawlessness is not based on the law of none and all. It comes in different amounts. Thus it is clear that everything except God, including the universe has its own flaws. A common concept of Leibniz is that the flaws suffered by all the things on this univ erse are made by the God himself. He is basically describing his theory of good by relating it to the power of God and his flawlessness. As described by Leibniz, every single thing on this planet has some flaws. For e.g. one human being cannot be perfect in whatever action he does. As is said in one famous quote "no one is perfect". Leibniz here clearly is relating this object of flaws found in the things made on the universe with reality. Over here another worldly example may be considered that everything that has been invented by the modern technology also has some limitations as we may consider that