Thesis Statement and Outline
What is your thesis statement? With the United States leading the world in small business failures, and with these businesses creating 65% of new jobs, it is important to understand the factors that help create these jobs and what causes small business bankruptcy. Introduction: The United States economy is driven by small businesses and their ability to create jobs. According to Small Business Administration (2011), Small businesses have been responsible for 9. 8 million jobs of the 15 million created between 1993 and 2009. (para. What share of net new jobs do small businesses create?). With this fact there is no doubt that the cause of bankruptcy and closure of small businesses must be looked at and fixed or at least altered. I. Small businesses create jobs and have been a driving force for many years. A.
They have produced 65 percent of new jobs over the past 17 years. 1. Many small businesses take on risks that big business would not, thus creating jobs that wouldn’t otherwise exist.
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a. Small businesses are always looking for new ideas or products to generate a profit and are not confined to a set product or service.b. Often time’s small businesses must take on the risk of hiring employees even when it seems impossible and be able to cover all the attributed costs. Big business will have enough working capital to negotiate better rates and terms regarding employees. B. The products of large business are often sold by small businesses giving the small business more of a product line. 1. With a greater product line, the possibility of more revenue is present and the opportunity to hire more employees may be needed. II.
Main reasons for business failure are inexperience and unskilled management A. Many businesses are started up without proper education 1. Without proper education, one will not understand the importance of a business plan or the proper structure for start up a. A business plan is essential for new businesses b. Most businesses that fail have simply failed to construct a business plan c. In order for a business plan to be relevant, it must be completed to help entrepreneurs grasp the concept of what they are trying to achieve.
William Bygrave, Andrew Zacharakis, 2007) 2. Inexperience is magnified when dealing with cash flow and business credit. a. Business credit especially when gained by a sole proprietorship is often used for personal needs which then will hurt the cash flow of the business. B. Unskilled management can be as detrimental to a business just as the lack of cash flow 1. There must be a balance between the skills learned by management which may include technical, human and conceptual aspects of management.
Jones and George, 2009; Samson and Draft, 2009). (Hossan, Sarker, & Afroze, 2012). a. Technical skills such as operation the various Microsoft programs are essential b. Human skills refer to how management relates to the workers and is able to implement their technical skills into this relation. c. While management must follow the conceptual aspects of management they must realize that in the end these are simply concepts and must use their own judgment to determine how they make decisions. IV.
It is important to understand the factors that lead to small businesses failure A. Small business bankruptcy is more common in non-incorporated versus incorporated mainly because of the level is personal risk. (Vlad, 2009) 1. Self-employed entrepreneurs that are non-incorporated need to use their own personal credit in order to secure lines of credit and business loans. 2. At times it has been shown that small businesses fail because the owner has certain knowledge of his or her industry but fails to connect this with the proper business model.
When a business is just starting out they will find that their assets and income are far less that the constant building debt. 2. Many credit card companies such as Visa, MasterCard, and American Express, will offer credit to small businesses with low rates in order entice them. This makes it very easy for a small business to become over extended with credit. V. Fourth main point A. Supporting details 1. Subdetails 2. Subdetails B. Supporting details 1. Subdetails 2. Subdetails VI.
Conclusion – There are many reasons and situations that will move a small business toward bankruptcy. It is important to learn these reasons and look for ways to prevent these all too common mistakes from happening. The statistics show that small businesses are an important factor in our economy, so potential business owners need to educate themselves in the rights and wrongs of starting up and running a business in order to make sure they do everything possible to succeed and more importantly, protect the contribution that small businesses make.
Explain in a brief paragraph of no fewer than 150 words why you decided to sequence your outline as you did. I decided to sequence my outline starting with the points as they appeared in my thesis statement and introduction. The reason I completed it this way is to keep a certain rhythm to the outline as I have in the intro and thesis statement. The main points are supported by supporting details followed by sub details in order to give a strong argument. When listing the supporting details, it was important to start with the stronger of the two details. Mid way through the outline I made point of listing two yet important factors as to why small businesses fail. It was importance to sequence these in this way to get the reader thinking about why before the final point. The last point in the sequence that I made was the factors as to why small businesses fail as I believe this is the most important of the entire paper. Reference Page