TRI DUC ENGLISH - What Makes a Small Business Successful? TRI DUC ENGLISH Reading Practice: What Makes a Small Business Successful? The U.S. Small Business Administration (SBA) defines small businesses as those employing fewer than 500 employees, and many are much smaller than that. In the United States, about a third of small businesses employ fewer than twenty employees. Many thousands of new small businesses are started every year, but few survive. In fact, according to the SBA, one in three falls during the first two years, and only one in two survives beyond five years. People start small businesses for a variety of reasons, but whatever the particular motivation, certain characteristics make a small business more likely to succeed. Business advisers point to the importance of finding a niche. It is difficult for a small business to compete with the array of products or services a large business can offer. Instead, the small business that has defined what is unique about the product or service it provides has a greater chance of success. A small business can offer customers personalized service and specialized products or knowledge that can be more difficult to find in a large chain store, for example. Related to the concept of finding a niche is the importance of maintaining a competitive edge. To be successful, a business has to look at what its competitors, whether large or small, are doing and find a way to stay ahead of the game. In addition to offering a specialized product or service, a business that has more efficient production or distribution systems, a better location, or a reputation for excellence in customer service can do well in a competitive market. Research and planning are vital steps in setting up a small business. It is essential to determine who the potential customers are and the best way to reach them. It is also n...