Characteristics of Small Business Owner and the Nature of Small Business in General

Abstract

Purpose---Identifies the characteristics of small business owner and the nature of small business in general.

Methodology---in this research is included a brief introduction to the reasons why people want to start their own business, what the characteristic of small business owner is and what is the nature of small business in general. This is followed by a definition of small business in Australia and a discussion about the importance of the role of Family Business Act in Australia economy. A unique small business example will summarize this report and explain how starting a new venture shows how entrepreneurs deal with different types of risks.

Introduction

In modern times, the world is changing quickly and there are a variety of new and exciting opportunities for achievement being created every day. Dramatic advances in technology and increased global trade are not only creating enormous economic opportunities, but also challenges. How could a small business survive, and thrive in a rapidly changing market and in an ever-increasingly competitive environment.

This report will systematically discuss the characteristics of small business owners and the nature of small businesses in general. In Australia the main small business sector is the family business, so it is very important to understand the purpose for which people start a family business and how significantly the family business affects the Australian economy. I have included a unique example of a small business owner and the different risks they are challenged with, when they launch their new business.

Characteristics of small business owner

1.1 Why people desire to start their own business

People create and operate their own business, not only because they want to achieve economic independence, but also to realize the value of life (Johns, W.C)

• As seen in Maslow's Hierarchy of Needs, the chart shows how, after satisfying physiological and security needs, humans need to satisfy their emotional & psychological needs with the yearning for social approval and the feeling of success. People need that sense of accomplishment.

Source: http://noq-journal.blogspot.com/2009/12/maslows-hierarchy-of-needs.html

 People tend to start their own business when driven by ambitions to make money.

 Many people do not like formal office- time, and working for a boss. They prefer to have more flexible work life and make their own decisions by controlling their own work time (Smith, 1971).

 Most people are creative – and the only