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Small Business

Austin Cook

English III Honors

Mr. Piatak
February 27, 2014

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Austin Cook
Mr. Piatak
English III Honors
February 27, 2014
Small Business
Small businesses have become the face of America's economy in todays society. Without
them, there would be an absence of innovation, ingenuity, and creativity in the country. Small
businesses give the people the freedom to express their ideas while contributing to the
community, as well as helping the global market expand and flourish. Businesses like Microsoft
and Apple represent prime examples of how a simple idea and a dream can evolve the world and
bring forth a new era of life through technology and innovation. A world without small
businesses becomes a world with less progress, fewer restaurants, little tourism, and fewer jobs.
The world is built on stilts, standing on a base of entrepreneurship that every company was born
from, modifying the world into what it is today. Small businesses give people the opportunity to
enter endless amounts of career choices, innovate the world, and support the economy all at the
same time.
Small businesses act as the building blocks for the worlds economy and basic standard of
living. Businesses go back hundreds of years ago, ranging anywhere from the woman at the end
of the block selling homemade clothing to Andrew Carnegie's billion dollar steel manufacturing
company in the late 1800s (The Steel Business). Before the 1880s, small businesses persisted
throughout America and ran the country. They served almost every purpose needed for food
production, housing, clothing, and major resource manufacturing required for basic living.

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Americas economy began to grow along with the amount of businesses being opened with it.
They have always played a crucial role in America's economy and growth, favored by the
government for their massive impacts. The government has even made efforts to protect and
support smaller businesses from being unfairly manipulated by larger ones so they can continue
to stay intact and thrive in society. There would be devastating consequences if this occurred,
leaving holes unfilled in the economic system if particular acts could not implement (Conte). The
overpowering of big businesses would act as the equivalent to an ocean only containing big
game predators with no smaller prey down the food chain to feed off of. This unbalance would
negatively affect Americas relatively smooth economic circle and highlights the importance that
small businesses have.
Every business ever established, no matter how large it has become, has started out small.
consider two of the largest and most successful companies out there today for example like
Apple and Microsoft. These are multi billion dollar businesses that both started out as small ideas
by a group of guys with big dreams and large intentions. These companies both started from
scratch and slowly worked their way up to becoming the most well known corporations and
producing some of the worlds most utilized products in modern day technology.
Born on October 28, 1955 in Seattle, Washington, Bill Gates grew up to become one of
the most influential entrepreneurs and businessmen to ever live. From the time he turned 10
years old, he became interested in computer programing. Throughout his teenage years, playing
with the uprising computer technology became an addiction. He would spend hours after school
with his closest buddies exploring these new upcoming machines. Back in the late sixties, when
the technology started to develop, they had very few computers available, especially for public
use (Gladwell). Fortunately for Gates, the preparatory school he attended, Lakeside School in

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California, had these new computers available to use. A Seattle computer company provided
computer time for the students with the help of the Mothers Club for using school proceeds to
build a terminal for students to use them. When Gates wasn't doing school work or reading
books, he would program computers until the crack of dawn (Bill Gates Biography). He and
his partner, Paul Allen, eventually started their own multibillion software company called
Microsoft and became two of the richest men in the world.
Although Gates may seem like a once in a lifetime human prodigy, he has shown how a
great businessman thinks and how successful businesses can form. From the very beginning,
Gates possessed qualities of a bright young man. As a child, he read many books and even
studied the encyclopedia. Once he began getting interested in computers, he accumulated over
10,000 hours of programming time over his teenage years (Gladwell). He embodies how
dedication and passion for something can result in a successful career in whatever someone
might choose. Gates had an advantage over everyone simply by just the amount of hard work
and effort, as well as the amount of hours he put into computers. At the time, the technology was
brand new and had not had a lot of exposure to the public. This gave Gates a major business
advantage because by the time he entered adulthood, he mastered the art of computer programing
and when he founded Microsoft, he hit the market at the peak of computer technology uprising
(Gladwell). His timing could not have fallen any more perfect than it had.
Born on February 24, 1955, in San Francisco, California, Steve Jobs emerged to become
another successful and innovative entrepreneur for modern day technology. Like Gates, Jobs
found interest in computer technology. As a child, Jobs would work with electronics along with
his father in their garage. His dad would teach him how to take apart and reassemble electronic
items they had in the house. This really boosted up his technological skills and helped him

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develop a passion for technology. Jobs excelled in school, projecting high test scores and creative
qualities from a young age. He had special opportunities to skip grades and move on straight to
high school early. After graduating high school, Jobs went to Reed College, but dropped out after
the first six months. From then on, he continued to educate himself. At the age of 21, Jobs and
his friend Steve Wozniak started Apple computers in his garage. The first attempt at the Apple 1
computer failed to make any profit. The computer had very few useful functions for public use.
Then, they created the Apple 2 computer, which became a huge success. After the first year on
the market, millions of computers sold, kickstarting the business and laying down an ascending
path for for Apple. The company was bought out by IBM and Microsoft, but eventually made its
way back to Jobs and is now the most innovative and user friendly technological company in the
world (Steve Jobs Biography). Everything from the iPod, to the iPhone, and the iPad has
changed the world and the way people utilize technology and entertainment.
Both Steve jobs and Bill Gates represent prime examples of people that have taken their
passion and turned it into ideas that have changed the world. Both of these extremely bright and
aspiring men began with nothing, just a small garage and a big dream, but possessed the
knowledge and persistence it took to turn that small business in a garage to multibillion dollar
companies. Their background and life stories show exactly what it takes to run a successful
business. Knowledge, persistence, and taking the initiative to go after goals play vital roles in
following through on whatever plan implements for the future. Another key in having a
successful business, which both of these entrepreneurs hit right on the money is timing. As
computers became more common for everyday public use in the United States, the market for
these devices flourished. Both Apple and Microsoft supplied a high demand in the new
innovation consuming the world. To run a successful business, the merchandise that the company

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sells must appeal to many buyers in order to have success. Companies that sell the hottest and
latest products usually do well because they have the highest demand for the product due to the
popularity of it. When computer technology first came out and really developed, it was new and
exciting causing everyone to want to get their hands on it, creating a perfect opportunity for
Apple and Microsoft to flourish. The circumstances could not have resulted better for these two
companies, run by two very intelligent people with perfect timing and a great opportunity. That
shows what it takes to start and run a successful business no matter how big or how small it may
be.
Education plays a key role in running a successful business. A lot goes into the process
and having the right education will allow someone to acquire the proper knowledge needed to
start their own. Although college serves as an optional asset, attending a university or some sort
of classes that will provide the right skills are highly recommended and will only benefit the
student in the long run. Going to college will allow a concrete foundation to be built for students
to inherit proper education creating a fundamental basis allowing knowledge to be proactively
utilized. Although there are thousands of colleges and universities around the United States with
majors in particular fields used for entrepreneurship, a few stand out in over the others sharing
the titles of having the most prestigious business and entrepreneurship programs in the country
(Himmel).
Babson University tops of the list of having the top ranked entrepreneurship program in
the country. They provide many scholarship opportunities to curb their high tuition costs. The
program contains over 90 entrepreneurship organizations and clubs that students can attend
outside of the normal classroom, allowing for more hands on opportunities and experience aside
from the standard classes already available. Baylor University takes the second spot, containing

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one of the oldest undergraduate programs in the US. Entrepreneurs and small business owners
comprise 100% of the faculty in the program, allowing students to learn from people who have
experienced owning a business hands on. Nearly 70% of graduates from the program end up
starting their own business, giving Baylors program a great success rate. The University of
Houston earns its spot at having the third most prestigious entrepreneurship program. Aside from
having the second largest program on the list, the school also provides nine mentorship programs
for undergrads, giving students opportunity for one on one advising by experts who have all
owned their own business in the past or still do currently (Top 25 Undergrad Programs for
Entrepreneurship). The list continues with many other universities offering programs similar to
these. The key is to find a school that offers programs best suited for the students goals and what
knowledge they plan to take away from the program. Utilizing and researching the qualities of
top schools like Babson and Baylor may serve beneficially in choosing the university best
suitable for them.
College allows for manipulation and experimenting with different courses containing
skills useful for starting a business. Attending classes that appeal to the student creates an ideal
situation for interest in what is being taught and creates motivation to persist through the studies.
Taking classes that help the student acquire certain personal traits such as work ethic,
imagination, creativity, leadership, and accountability serves as a way of improving the skills and
mindset for building the most successful business possible. As far as particular majors and
courses goes, students should acquaint themselves with core classes that would pertain to
business aspects like entrepreneurship, accounting, marketing, finance and business law. Even
courses like graphic design and management can help further ones personal abilities creating a
wide variety of personal expertise. None of the majors and minors serve as absolute musts for

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every business goer, but the skills acquired from taking the courses will only benefit the student
in building a solid foundation of skills that can later be applied to their business (Himmel).
Once the aspiring business owner completes the proper educational studies, it becomes
time to take action. Starting a business requires certain steps and precautions that must be intact
for a business to be up and running for the owner to legally establish and make money from it.
The first step that must be completed involves market research. Not every product or item being
sold appeals to the majority of people, so the first step is to research the potential market the
particular business caters to. The goal is to produce products or services that appeal to potential
buyers, if they fail to do so, the business will follow. Another aspect to look out for involves
market size. For a business to flourish and produce profit, the market has to have a wide variety
of customers interested in the product. Competition also serves as a limiting factor. The more
competition that the market has, the more difficult its going to be to beat out competitors and
drive customers towards your particular company (Mintzer). Making sure theres plenty of room
in the market allows for more room for the business to breath and lowers the level of
competition.
Once the targeted market becomes established, money moves in as the next step in
getting the business up and running. You cant start a business without money, so obtaining that
money becomes vital. Business owners must begin with a starting capital to use for initial
investments towards things like buildings, merchandise, employees, marketing, etc. Doing this
requires writing a business plan and figuring out how much mony required and the costs
associated with each aspect of the business. This will help map out the basic business structure
and allow the owner to open up his view on how money should be distributed as well as where
loans and investments can be received. Hiring a business attorney can also be very beneficial in

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helping advise the owner with legal aspects such as determining the right business structure,
drafting contracts, and reviewing leases. To supplement an attorney, an accountant can be hired
as well. They will help deal with determining the ideal form of ownership along with the
attorney, and help deal with things such as business records and procedures, taxes, and start up
ventures (Mitzer). Although hiring expertise in those particular fields would be extremely helpful
for their professional advising, it does not serve as a requirement for business owners because the
skills can be acquired through taking appropriate courses in college or some sort of other
educational course to obtain the skills the two provides.
Creating a business structure becomes the next step in the long process. Business
structures can be classified as either partnerships, sole proprietorships, corporations, or limited
liability corporations (LLC). Partnership classified structures are businesses owned by multiple
people such as the early stages of Apple, with Steve Jobs and Steve Wozniak, and Microsoft,
with Bill Gates and Paul Allen (Steve Jobs Bibliography) and (Bill Gates Bibliography).
Sole proprietorship classified structures are businesses started by a single owner. A corporation
becomes an independent entity owned by shareholders. This is a business that has grown to the
point where people can invest in stocks, creating shareholders, or become people that own parts
of the company. Corporations have more legal liabilities and responsibilities than the other
business structures (SBA.gov). LLCs share similarities to corporations but LLCs remain easier to
set up and the partners are only liable up to their investment into the company. Additionally, LLC
partners only pay taxes once, where corporations on the other hand pay taxes at the corporate
level and then the partners pay taxes on their paycheck as well (Pirraglia). The goal in
determining the right business structure involves evaluating each one and determining which one
fits best with how your particular business lays out. Small businesses typically fall under either

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sole proprietorship or partnership because corporations business structures typically associates

more with large multimillion dollar companies rather than smaller businesses that have become
more abundant.
Once the structure of the business becomes set, deciding a business name is in order.
Although the name may appear to play only a minor role in the process, it serves as one of the
most vital decisions the company has to make. The name is how the business will become known
to people. It gives the business its identity and will help the company make its mark in the
market, setting itself apart from the others. The name must be memorable and well recognized by
the people so that it is engraved into their memory. Choosing a name that helps describe and
represent what the business is all about allows for a better connection between the people and
what the business is all about as well as the message that the company portrays towards its
particular market niche. The name should have a catchy vibe to it, but easy to pronounce as well
as having memorable qualities (Mitzer).The name defines what the companies all about and
helps determine its lasting impression on people.
One of the last and most important steps in starting a business includes obtaining all of
the necessary licenses and permits. This step probably takes the most time and energy because of
the amount that has to go into the process to make sure everything about the business is legal. A
standard business license must be the first thing that every business owner needs to acquire
before anything else. Depending on what the business is selling, owners may need to obtain
additional licenses and/or permits necessary to fulfill legal needs in selling things like
guns/weaponry, liquor, and tobacco. The owner must familiarize themselves with the law
requirements of their states or market zones that they may have accountability for. Many other
factors and minor steps come into play when starting and obtaining a business like

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marketing/advertising, bills, leases, rents, loans, employee salaries, and design. With the
extremely competitive markets around the world today, its crucial that the foundation of all of
these steps remain strong and the business is constantly striving to improve. The importance of
the social media aspect of running a business can not be stressed enough as far as marketing and
advertising the company goes. In todays market, with all of the new technology and competition
in growing markets, getting the word out and persuading people to buy into your business acts as
the one one of the most crucial keys to success (Mitzer).
A part of owning a business involves the lifestyle that you live on a day to day basis.
Owning your own business attracts many people to the idea due to the fact that they serve as the
boss of themselves. Business owners can fluctuate schedules of the business according to the
events going on in their everyday lives. They do not have to answer to anyone but themselves.
The absence of a higher authority allows for complete control decisions made. People may make
false assumptions of this freedom and flexibility schedule of a business owner, but the
responsibility and reliability demanded in this career can sometimes be overlooked. Some
business owners run their business only part time while maintaining a regular day job. Balancing
both may cause additional complications but at the same time running a business part time
allows for additional income for the owner. Running a business while maintaining a day job
can be very difficult sometimes, states Melonie Kilby, owner of SOS dance studio in
Wilkesboro, North Carolina. I am pulled in multiple directions at the same time. Sometimes I
just have to prioritize my responsibilities for that particular day and do what is most important
and then play catch up on other stuff later. One good thing is that Derek (co-owner) and I work
on the studio together so he takes care of a lot of the business side of the studio. We have also
hired great instructors who can help out if we cant be there. Melonie and Derek Kilby equally

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share ownership of a growing local dance studio in North Carolina. Both owners have day jobs
that they supplement with their studio hours during the evening. They started their business by
renting out a warehouse which they personally renovated. The process only took a few months
until the studio was up and running. They retain a CPA for year-end tax prep and filing to help
manage the financial side of things. Other than that, the two handle everything else on their own.
The studio opens for classes approximately seven hours per week, but they spend at least about
five hours per week outside of classes and studio time for standard maintenance, communication,
advertising, etc. Both Melonie and Derek agree that although running a business may require a
lot of work and energy, the reward and sense of accomplishment from seeing all of their hard
work turning their studio into a success is truly gratifying. They both show an exponential
amount of passion through what they do and wouldn't change it for the world (Kilby).
Starting a business provides many great, endless possibilities to the eye of the beholder.
Small businesses have acted as the staple in America's economy for many years now and will
continue for many years to come. Our country was built on a basis of ingenuity, creativity, and
the aspirations of big dreamers looking to innovate the world, and nothing describes what
businesses represent any better than that. They allow room for economic growth and create
opportunities for the world to achieve great things, constantly improving the well-being of
everyday life. The more Steve Jobs and Bill Gates the world produces to take advantage of the
great opportunities starting a business provides, the better off the world will be; nothing will take
us further. Nothing else gives people the opportunity to enter endless amounts of career choices,
innovate the world, and support the economy all at the same time.

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Work Cited

"Bill Gates Biography." Bio.com. A&E Networks Television, n.d. Web. 23 Feb. 2014.
<http://www.biography.com/people/bill-gates-9307520>.

Conte, Christopher. "IIP Digital | " Small Business in U.S. History. IIP Digital, 28 July
2008. Web. 26 Feb. 2014.
<http://iipdigital.usembassy.gov/st/english/publication/2008/08/20080814215602xjyrrep0
.6187664.html#axzz2uSsOR9Xu>.

"Corporation | SBA.gov." Corporation | SBA.gov. Web. 25 Feb. 2014.

<http://www.sba.gov/content/corporation>.

Gladwell, Malcolm. Outliers: The Story of Success. New York: Brown and Little, 2008.
Print.

Himmel, Ryan. "What Should I Study to Be an Entrepreneur?" Entrepreneur.

Entrepreneur Media, 23 May 2013. Web. 27 Feb. 2014.
<http://www.entrepreneur.com/answer/226787>.

Kilby, Melonie, E-mail interview. 27 Feb. 2014

Pirraglia, William. "The Difference Between a Corporation and a Limited Liability

Corporation." Small Business. Chron, n.d. Web. 26 Feb. 2014.
<http://smallbusiness.chron.com/difference-between-corporation-limited-liabilitycorporation-3707.html

"Steve Jobs Biography." Bio.com. A&E Networks Television, n.d. Web. 23 Feb. 2014.
<http://www.biography.com/people/steve-jobs-9354805>.

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"The Steel Business." PBS. PBS, n.d. Web. 26 Feb. 2014.

<http://www.pbs.org/wgbh/amex/carnegie/sfeature/mf_flames.html>.

"Top 25 Undergraduate Programs for Entrepreneurship 2012." Entrepreneur.

Entrepreneur Media, n.d. Web. 27 Feb. 2014.
<http://www.entrepreneur.com/slideshow/224422>.

"7 Essential Startup Steps." Entrepreneur. Web. 24 Feb. 2014.

<http://www.entrepreneur.com/article/202106>.

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