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Not All Small Businesses Are Alike

The first week of May is small business week, according to Entrepreneur magazine.

A Pew Research study found that the public had a more positive view of small businesses than any other institution in the country –- they beat out both churches and universities. Many claim that small businesses are the engine of the American economy. That is why putting care and thought into them from the government can help their businesses grow and thrive in the current climate. Businesses can aid in this progression by checking out such help as the best software for small business companies as self-support. However, many small businesses refrain from using new software as they are worried that they won’t be able to overcome IT problems if they experience any. Whilst this is a common concern for some businesses, there are ways to make it easier for businesses to use new software. By looking at some Managed Service Prices Melbourne, small businesses could consider getting some help from IT professionals to ensure they can grow their business successfully with new software and other digital solutions. This should take some worry off the business owner. All small businesses need to digitalize their operations at some point, so it’s important that they are confident with IT, or they can outsource this IT to people who have more experience.

However, the Harvard Business Review notes that “if policymakers really want to help small businesses – and they should – they need to understand that not all of them are alike. Each type has a way it contributes to employment and the vibrancy of the American economy.”

There are 28 million small businesses in America and they fall into four different segments:


“Treating all small businesses the same can lead to potentially misleading declarations, and bad policy. For example, a ‘mom and pop’ Main Street shop has different financing needs than a high tech startup. One might need a bank loan while the other might need a patient equity investor like an angel or venture capitalist – they could even look at getting a business loan from somewhere like United Medical Credit. However, if they’re a rural-based company, they could consider trying to get a different sort of loan. Many small businesses are set up in rural areas, as buildings and sites are often cheaper there. Whilst they’re cheaper, it does make it a lot more difficult for businesses to create more jobs and receive customers. That’s why there are usda commercial loan schemes that can help these smaller businesses out. A lot of small businesses do struggle financially, so it’s nothing to worry about. Hopefully, more businesses will look at getting loans if they need one. Furthermore, setting up an innovation ecosystem around a university or an emerging technology helps potential high-growth entrepreneurs, while downtown revitalization can help local businesses from the Main Street category.”

“Each type of small business matters for different reasons. The key is to remember that what helps one group will not necessarily have the equal or any impact for another.”