#SWAAYthenarrative

How Small Businesses Affect a Nation’s Economy

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Gone are the days when small business owners were individuals lacking formal education or corporate skills. Due to the advent of the Internet and social media, social status or level of education are no longer the defining criteria for achieving success in entrepreneurship.


Because of that, small businesses have become a really important part of national economies in recent times. This trend is now observable in a number of developed and developing countries. SBEs (small business enterprises) contribute to half of the total GDP in such developed countries as Japan and the USA. This gives one a pretty good idea of how essential SBEs are to the continual growth of any economy. However, in some countries, small businesses are oftentimes underrepresented, and it's high time that changed.

To better understand the role SBEs play, we should first consider some basic economic concepts.

What is a Small Business Enterprise (SBE)?

There isn't a universally accepted definition of small business enterprises. In the United States, SBEs are referred to as commercial entities that employ a staff of 500 and have little influence on the market segment they operate in. In their turn, Europeans define them as having fewer than 250 people.

What is an economy?

An economy can be defined as a system of buying, selling, and producing goods and services. The most basic component of any economy is the distribution of money, or putting it simply, buying and selling. There are many interdependent factors that influence economic growth or decline of a nation, such as labor, law, infrastructure, natural resources, human capital, and technology. For the purpose of this article, we will focus on small business enterprises and their influence on a national economy. There are numerous ways in which SME ensure collective growth of an economy but we'll focus on these four:

  • It serves as a source of employment.
  • It helps reduce poverty.
  • It alleviates tax burden on small business owners.
  • It reduces crime.

Employment

Due to the abundance of information on social media, it has become relatively easy for literally anyone today to start a small business. All it takes is having some start-up capital and Internet access. However, small business owners need to employ people to ensure their company's growth. Because of the small initial costs involved, people are constantly looking for ways to launch their own SBEs. Examples of such small enterprises include companies hiring custom writers for people who can buy cheap essay, Wieners Circle, Death wish Coffee, etc.

One form of trading that has become very instrumental in facilitating the creation of small businesses is e-commerce (online shopping). E-commerce makes it possible to start a profitable business with no infrastructure at all, and that means little start-up costs. Small business enterprises serve as an excellent alternative source of employment, especially when it comes to jobs that don't require graduate level education. And this, in turn, translates to increased economic growth and development.

Poverty

Poverty is undeniably one of the main reasons for economic stagnation. Poverty and unemployment go hand in hand, which means that the former can be eradicated by providing more job opportunities. And the best way to do that is to encourage the creation of SBEs at the community level. Given the low start-up costs involved, it's safe to say that an economy that invests in SBEs is sure to experience exponential growth within the shortest possible time.

Crime Drop

A spike in crime rate is undeniably another anti-economic growth indicator. That's because it imposes a huge economic burden on the affected communities and taxpayers. And the worst thing is that investors make it a rule to avoid crime-ridden areas.

So what can be done to improve a country's economy if it is filled with crime-ridden communities? To tackle a problem of this magnitude, we've got to first understand its underlying cause, which is joblessness. In fact, it doesn't take a rocket scientist to figure that out. If that's the case, then creating SBEs seems to be the logical thing to do. In other words, by creating jobs in these communities, you provide people with an opportunity to make an honest living and give a boost to your economy.

Taxes

Tax payment is one of the major channels through which governments get revenue. As of 2010, small businesses accounted for 50% of the total GDP (Gross Domestic Product) in the United States, one of the strongest economies on the planet. This means that half of the foundation of one of the world's biggest economy is based on the input of SBEs. And as we all know, the ratio of tax revenue to GDP is directly proportional. In other words, tax revenue increases as GDP increases. So, not only do small businesses affect GDP but they also directly affect tax revenue. Given that, a rapid decline in output of SBEs will automatically cause a rapid decline in economic growth.

Because of the small start-up costs involved, SMEs are relatively easy to create and run. That is exactly the reason why more and more of them are started on a regular basis in developed and developing countries. This fact alone underscores the grave importance of small businesses. Their growing number means more employment opportunities which, in turn, translates to increased tax revenue and GDP.

Now that you know the role small businesses play in a nation's economy, it should be pretty clear to you that they ensure global financial stability. And this further reinforces the belief that we all have significant roles to play in nation building, no matter how small they may be.

Time-Saving Hacks That Will Help You Focus More on Growing Your Brand

Whether it's your child or your brand, there is nothing quite like the excitement you get when you see the fruits of your efforts grow. In the face of aversion, you must remain cool-minded and adaptable to remain effective. This can be quite stressful, and every minute counts. Alone, the responsibility can be overwhelming - wouldn't it be nice if things just ran themselves sometimes? Especially those things that we do mindlessly all the time, and seem to take up most of our time?

When you start a business, you soon come to realize that in order to grow your brand, you need to be extremely organized. And to be efficiently organized, it is imperative that you master the art of managing your time. The saying 'time is money' rings true when it comes to growth. This is why we're going to provide you with helpful tips that will allow you to save time so you can focus on growing your brand.

Use the Right Tools

Technology has changed the way we conduct our business with each other. Today, more than ever before, we have access to data which gives us clearer insight and vision, as well as better tools for productivity. However, as we all know, this is all conditional to your intent. As much as a smartphone can be a tool for productivity, it can also be a fantastic source of distraction and procrastination, which is directly detrimental to said productivity. Automation is an advantage that is available to almost everyone today when it would have been unthinkable just a generation ago.

Get Connected

When a brand is still young, the team is still close-knit and there isn't too much coordination necessary when it comes to keeping up to date and on top of work. Chat groups and video calls can do, as well as simple task-managing apps. But as you grow, your workflow becomes more complex and the volume of data generated by your company will very quickly become a logistical nightmare.

Telltale signs of data overwhelming are endless excel sheets, frantic Post-it notes all around the (real or digital) office, and relying on the consumer rather than business-oriented data storage and communications solutions. These have their limits, and investing in a holistic company-wide system will not be a waste.

Work More Effectively

Your workflow can be simplified into smaller tasks which follow each other in a sequence, which can have conditional elements to it. That's where automation comes in. If you can draw it in a flowchart, you can automate it. Tasks that would have taken days can be outsourced to a machine that will not only perform but also learn in the process.

There is now a myriad of online services for freelancers which essentially give them the productivity potential of a small firm. We're now at the point where bots at https://www.hellobonsai.com/contract-templates can generate custom templates for the documents your brand needs, replacing the need for a legal consultant to intervene. You just need to know what you want to automate, and what you want to make out of it. If you create a logical process from the inception of your brand, then the automation will be seamless, as all you will need to do is add more tasks.

Be Mobile and Flexible

Most of your coworkers and clients will probably already have a smartphone, or will soon. It is also very likely that beyond using these for leisure and social activities, they use them for work. It is now normal to switch off the heating in that apartment you've been renting out while you are on holiday because your AirBNB tenants are overusing it. Or to track the status of your latest food delivery while you are sitting on the toilet.

Consumers today are not only constantly on the move, but they are also increasingly data-focused. They will be looking for results and have the capabilities they need to research, analyze, and calculate what they deem necessary to ensure they will be making the right decision. They thus also expect the same in return, in the form of bespoke customer service that is both intelligent and responsive.

Simplify

Data is everywhere and is relatively easy to obtain. In a single click, you can generate a web analysis that will reveal more information about your blog or website than your doctor will ever tell you about your own body. Before diving into this ocean of data, take time to identify what is really important to you. Brainstorming is a great tool to really identify and prioritize what you and your team should be focusing on first. If you try to wage war on all fronts, then the chances of winning are slim.

With the right tools and the right method, you can save yourself quite a considerable amount of time. With both the agility and flexibility that data managing and automation software brings to the table, you will see an increase in your productivity. Careful planning is key, and if you focus on streamlining your workflow, you will be able to take your brand to the next level.