Define a small business. What is the economic role of small businesses?
What will be an ideal response?
Answer: A small business is a company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people (although this number varies by industry).
Some of the major contributions small firms make are:
? They provide jobs.
? They introduce new products.
? They supply the needs of larger organizations. Many small businesses act as distributors, servicing agents, and suppliers to larger corporations and to numerous government agencies.
? They inject a considerable amount of money into the economy. Small businesses pay nearly half the private-sector payroll in the United States and produce half the country's gross domestic product.
? They take risks that larger companies sometimes avoid. Entrepreneurs play a significant role in the economy as risk takers–people willing to try new and unproven ideas.
? They provide specialized goods and services.
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Shared leadership is a reflection of the fact that ________
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