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Small and Medium Enterprises in the USA

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In this chapter, all the problems and issues that are associated with a small scale business have been discussed, including their aims and objectives and how these businesses function on such a small scale. Their main sources of finance, as well as profit capabilities, have been discussed, as well as the ways by which these businesses tend to make money.ASME functions on a very small level and the employees that are usually working in an SME are quite illiterate or do not have the desired level of qualification that is needed. Commonly, a small scale business can be functional in several ways. For instance, a small handicraft business would be regarded as an SME. This is because i) the number of profits generated by a business is quite low and not consistent and ii) the number of employees that are working in an SME is lower than 50, which is the actual limitation set by the European Commission. A ‘medium’ sized business is one which functions on a slightly larger scale as compared to a small business, and as described by the EU Commission, the number of employees in a medium scale business is more than 50 but less than 250. There are several issues that arose while this research was undertaken. Due to the lack of records that are unavailable, most of the research had to be undertaken on a purely qualitative level and very little quantitative data was found with which a proper extract an idea could be generated about small business. Furthermore, the types of businesses that are functioning on a small scale level are quite diverse. For instance, an online business is a small scale business, because the profits generated online are usually not as high as compared to a large scale business, and the numbers of employees in such a business are usually quite low. On the other hand, an agricultural business is also a small scale business, because the number of employees that are hired for agricultural purposes is not that high, and therefore their illiteracy causes a huge hindrance in proper communication (Goodman, 2003). Another research issue that arose was the fact that a small business keeps very little records of their past dealings because of the lack of space or storage data. Therefore, most of the claims made by small businesses could not be verified and only after extensive research could it be found whether the word of a small scale business entrepreneur was true or not. This caused a problem because all data that had to be included in the research needed to be verified and validated, and it took a lot of effort and intellect in order to come up with the right results.