Small Business Administration (SBA)

Small businesses represent a large aspect of the world economy, with most countries being predominantly populated by small and medium-sized enterprises (SMEs). Small businesses represent both—a majority of the employment and the number of firms within most of countries. It is, however, important to note that there are significant cross-country differences in their importance within these economies. Given this importance, there is a wide governmental policy action to promote the emergence, growth, and development of small businesses as a way to promote one country’s competitiveness.

Small businesses are characterized as being relatively more flexible and adaptable than larger companies are but with a smaller amount of resources (financial, physical, and human). Notwithstanding that, the importance of small businesses to the economies is consensual; they can be ...