American Small Business: Start-up, Survival And Closure

The American small business is the backbone of national economy and has a prominent effect. It employed half of the private sector employees, and not merely, it also generated 60-80 percent new job annually. Especially, it made greater contribution to the employment of women and minority nationalities and other social groups. It is the important body of creativity and unceasingly cramming new vitality to the American economy. So it has been attracting more and more attention in that country. How to bring the potential of the small business into play to alleviate the pressure of employment, to promote the development of economy in our country, to deepen the reform of the market economy system, the experiences of the development of American small business has presented us a lot to learn.On the basic of consulting abundant data the positive analyses are laid stress on the dissertation combining historic and practical perspective. Macro and micro theories are used. First, the basic situation on the start-up, survival and closure of American small business is ascertained. Then the essential factors, which influenced the development of the American small business, are explored by analyzing the macro economic environment, financing, innovations and government control. In line with such exploration, the comparison of the development and influential factors of the Sino-American small business has brought about that there were a lot of better practices in America. At the same time, it has been found that the American small business met a lot of problems similar to those Chinese business were facing. The method the Americans used to seek ways to solve such problems can inspire us in the development of Chinese small business.The number of American small business is large. There are more than 20 million small firms in the United States. That means one small firm in every ten Americans on average. Estimates for businesses with employees indicate that there are about ten percent of total small business starting up annually, and the same percentage of closure. This ensures that the fast turnover and the comparative stability in number of the American small business. The principal part of some American industries is small business. Each turning point of an economic cycle brings shock to small business. The financing cost of the small business is high and terms of loans are short. To some extent, the government to give play to its function of management is required. Innovations strengthen the competitive power of the small business, but the government control brings heavy burden to the small business. So the government should reform the policy and regulations.To ensure the prosperity of the American small business, there is no need to worry about the short-range vitality of the businesses. To the small business in our country, it is similarly important to hold the entrepreneur spirit in esteem in the whole society, to give play to the acting force of the superiority district in promoting pioneering work, to help grow the essential factor market such as venture capital, etc., and the government should give active aid to the development of the small firms to lighten their burden.