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Small business

Проблемы бизнеса | CONTENTS | ВВЕДЕНИЕ | PART I. BISINESS | MANAGEMENT | GENERAL CONCEPT ON MANAGEMENT | MARKETING | GRAMMAR PRACTICE | VIII. Translate the following sentences into English | XI. Read the text and divide it into some meaningful parts giving the proper title to each of them |


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Small business enterprises are the first stage of developing business. They are the corner stone of private entrepreneurship. Choosing the right business it is necessary to mind that there are three ways in economy: making a product (manufacturing), selling a product (retail or wholesale trade) and providing services. Small business is the foundation of free enterprise economic system. The small business is considered to be the driving force in economy because it makes substantial contribution to employment opportunities and technological innovations. In the United States more and more people believe they can achieve the desirable quality of life through small business ownership.

The people who initiate the business are called entrepreneurs. They play a leading role in the identification of new ideas and products. They collect the funds to initiate the business, organize and direct it to derive a profit for themselves and to provide goods and services for the public. Profit is the return on investment and the reward for the risk. One of the risks may be the loss. To avoid it, it is necessary to plan the business carefully, taking into account economic environment.

There are various ways of defining a small business. Such enterprise is owned by a sole entrepreneur who is entirely responsible for all aspects of running business. Various criteria of small business are also developed in the United States by two organizations: 1) the Committee on Economic Development and 2) the Small Business Administration. The first offers to consider an enterprise as a small business when management is independent, the capital is owned by an individual, the area of operations is mainly local and relative size within the industry is small. The second defines a small business when it is independently owned and operated, not dominant in its field of operation. It is known that small business enterprises are eligible for loans and other assistance through the state. That is why the main criterion of small business enterprise is a quantitative size classification based on sales volume and number of employees.

There are many ways of getting profit and running business successfully, but one should not forget about the personal characteristics that contribute to business success. To such main traits belong: 1) drive; 2) mental ability; 3) human relations ability; 4) communications ability; 5) technical knowledge.


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XIV. Work in pairs of two or three and talk about marketing| GRAMMAR PRACTICE

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