Choon Yong-ACE Class Report #61: Small Business Workshop

Author of Book: Instructor: Brady Leatherman
Date Read:

Book Report

ACE Class Report # 61: Small Business Workshop
Begin: 3/18/2024
Finish: 5/6/2024
Title: Small Business Workshop
Instructor: Brady Leatherman.

Why I choose to take this class:
To learn more about small business operations: how to start a small business, requirements, resources availability, how to operate a successful small business, taxes and problems to avoid.

What I learned from this class:
Small Business Administration (SBA): is an independent US government agency that promotes and protects the interest of small business. It offers aid in the form of loans, counseling and information on management. The SBA helps victims of disasters and offer programs to enable members of minority groups and women to own their own business. It ensures that small business receive a fair share of government purchases and contracts. The SBA issues numerous publications in various fields of small business. Congress created the SBA in 1953. It can be traced to the small war plant corporation. The definition of small business: any manufacturing plant that employs 100 persons or fewer with an annual sales of less than $200,000. The sales value have been raised to $1 million because of inflation. SBA provides assistance in a number of ways: it lends money directly or as a participator with bank to finance construction or expansion, purchase equipment or material or to supply working capital. Other loans are made to business that have suffered loss in a natural disaster or civil disorder. SBA policy has limited loans to $250,000 to one borrower, the maximum term has been 10 years. The agency also licenses, regulate and offer financial aid to small business investment companies which provides capital to small business. It assist small business to obtain government contracts. An important aspect of its function is to secure management, technical, and production guidance for small business.

Types of small business: There are three main types of business ownership:

1) single proprietorship,

2) Partnership and

3) corporations.

Single proprietorship: Are business owned and operated by a single person. The owner makes all the decisions and receive all profits. They are legally responsible for any business debts. Proprietor can start a business with a small amount of capital and few legal formalities. Many single proprietorship are small store or such services enterprises as beauty parlors and repair shops. Single proprietorship are the most common form of business ownership in farming, construction and many industries. Most of these business close down if the owner dies or run out of capital.

Partnership: Consist of two or more owners who share the responsibilities and profits of a business. In most cases, each partner is liable for all business debts. Partner may sign a legal agreement that specifies the amount of work and capital each person contributes and the percentage of profits each receives. Most partners together can raise more capital and handle more business than a single proprietor. Nearly all partnership are small business. They are most common in laws, medicine, real estate and retailing. A partnership can be dissolved by mutual agreement or by the withdraw of any of the partners.

Corporations: Owned by stockholders who have shares of stocks in these companies. A corporation is difficult to establish and operate than a single proprietorship or a partnership. People who want to establish a corporation must meet many legal requirement of the Federal, State and Local government. Corporation have three advantages over other types of business ownership: 1) Large amount of capital can be raise through the sale of stocks, 2) The owners – That is the stockholders have limited liability. If the corporation goes to debt, they can lose no more than their investment and 3) business operation are not affected by an owner’s death or withdraw from the company.

How will this class contribute to my success upon release?
Understanding the structure of various types of business will help me set up a small business in the future. This information can be conveyed to other communities which I hope to volunteer my services.