Small businesses benefit both the economy, by creating new jobs and industries, and consumers, by providing innovative specialized goods and services to fill specialized market niches. Over 90 percent of businesses are considered small businesses, which create vast new industries, encourage entrepreneurship, and revitalize economically depressed areas by creating many new jobs in the local area. The individuals owning and operating a small business can benefit greatly as well, through careful planning and proper management.
             Small businesses create the largest portion of new jobs in the country. In fact, 99.7% of all employers are small businesses. (sba.gov/aboutsba/sbastats.html) Members of the workforce that have a lower chance of finding a job, such as women, minorities, and welfare recipients, find employment easier in small businesses. Low-income areas can attract small businesses due to the lower cost of operation, and can grow economically as a result of the new jobs, improving the quality of life of the area. Together, these uplifted areas contribute to the national economy. Small businesses generate 47 percent of the nation's sales and over half of the GDP. The three ways that a small business can form are sole proprietorships, partnerships, and corporations.
             Most small businesses are sole proprietorships. The individual owner gains unlimited control and flexibility over the business, as well as all the profits, but also gains unlimited financial liability and financing limitations. Sole proprietorships are most commonly small or temporary businesses, due to the limited finances and ease of formation and dissolution. However, the owner must take on all managerial and operational tasks, which can lead to disaster if the owner lacks sufficient knowledge and training in the areas key to a business's success.
             Another type of small business organization is the partnership. Partnerships benefit from the combine...