The paper "Characteristics of Small Business Owners and Nature of Small Businesses" is an excellent example of an essay on business. There is no single definition of the term ‘ small business’ globally. This is due to the fact that a business enterprise that might be considered small for the purpose of one regulation may be considered large for the purpose of another. For instance, according to the Australian Bureau of Statistics (ABS), the term ‘ small business’ refers to a business enterprise that employs less than 20 people (MacGregor & Vrazalic, 2007). On the other hand, the United States Small Business Administration defines small businesses as a micro-business with less than 10 employees.
However, numerous studies have demonstrated that there are qualities commonly found in small businesses, which distinguish them from large ones. These distinct qualities are found in the successful small business owners as well as to the nature of these businesses in general. One of the most distinct characteristics of such businesses is that they are usually owned and managed by independent persons who are in charge of making all decisions, (Stokes & Wilson, 2010).
In addition, depending on the attributes used for measurement, small businesses have a distinctly small share in the markets in which they operate. Thus, the term ‘ small business’ refers to a business enterprise that is owned and managed by independent persons and which has a small market share. In view of this, this paper seeks is to examine some of the unique characteristics of small business owners and also the nature of small businesses in general. Characteristics of small business owners The characteristics of small business owners are varied.
First, small business owners are portrayed as risk-takers. Certainly, they assume some risk by investing their own money in the businesses, Longenecker et al (2005). Further, the stress and the time required to run these businesses may placer them and their families at risk. However, according to Longenecker et al (2005), small business owners are moderate risk-takers. They only accept risks over which they have some control. They are not extreme risk-takers who accept results depending purely on chance. Second, small business owners are systematic hard workers.
A study conducted by Jeffrey et al (2010) on small business owners from Australia found that such individuals have a desire for independence and have a sense of initiative which makes them want to use their own abilities in achieving their goals to the greatest extent possible. Further, the study showed that such people are willing to work long so as to make their businesses succeed. Further, according to Longenecker et al (2005), successful small business owners have a strong passion for or commitment to their businesses. They generally have an attitude that results in tenacity in the face of difficulties and willingness to work hard and thus, they do not give up easily.