Abstract
There are many pros and cons to starting a small business. The pros and cons can very well
illustrate the behavior of the individual, which is what microeconomics is. Even though
there are cons, the successful stories of WIlliam Wrigley Jr., and Adolf Coor explain the
pros.
Over 50% of the working population In the United States, or roughly 120 million
individuals, work in small business. Individual economic behavior between the firm and
the consumer is what makes of microeconomics. Small businesses illustrate
microeconomics well because they deal with individuals using their own resources,
marketing, and sales to reach consumers. As mentioned before, small business makes up
half of the economic empire in our nation. Small business always starts as an individual’s
idea. When we explore the pros and cons of starting a small business, we can see the
amazing power and influence that an individual’s decisions make in the market system.
According to Forbes Magazine, “Approximately 543,000 new businesses get started each
month.” It seems successful, but not all of these actually work out. Forbes Magazine also
states that 5 out of 8 new small businesses fail. But why? One reason is the funds to start a
business. Many people try to start a business, but don’t fully understand how much money
is going to get put into it. Whether it is just getting the business started, or continuing the
activity of the business, funds are a huge factor. There are times when people start from
nothing, but it definitely doesn’t always happen like that.
Another reason could be that the entrepreneur failed to reach out to the customers. This
happens through a lack of marketing. The Chron explains, “That without marketing… a
business may not have the opportunity to progress and succeed.” Location is another
important factor in providing for a consumer’s needs. Failures can also come from either a
lack of supply or demand. If the product is not needed, then the seller will have a hard time
selling. Or if the business cannot supply enough of the product because of a large demand,
it makes consumers unhappy, which hinders the success of the business.
The cons of having an unsuccessful business can and most likely will lead to financial
strife for the individual, and the individual’s family, and the individual’s employees.
Failing can discourage a person, and it can hinder their reputation. That is why it is an
important attribute for all business men and women to be determined, optimistic, and
