Success and expansion sometimes lead to problems. The entrepreneur must plan carefully and adjust competently to potentially new and disruptive situations. Providing Technical Innovation. Studies show that the incidence of innovation among small-business workers is significantly higher than among workers in large businesses. Small firms produce two and a half times as many innovations as large firms relative to the number of persons employed.
Small businesses employ approximately one-half of the nation's private work force.
Table 5.2 lists the small-business industries that are generating the largest number of new jobs. Small businesses challenge larger, established firms in many ways, prompting them to become more efficient and more responsive to consumer needs. Filling Needs of Society and Other Businesses. Many large firms may be unwilling or unable to meet the special needs of smaller groups of consumers. Such groups create almost perfect markets for small companies.