2 DYNAMIC STRATEGIES FOR SMALL BUSINESS
to ensure that business objectives are met. Granted that although themajority of business in the United States is small or entrepreneurial, wecontinue to address the needs of larger organizations, often to the exclu-sion of these small employers who are responsible for the bulk of theemployment.Steve Martin, responding to a question regarding the percentage of jobs in the United States attributed to small business, responds, in part,Small businesses (deﬁned as having fewer than 500 employees)represent a major part of the economy and account for 50% of employment in the United States, and according to the U.S. SmallBusiness Administration, create 60 to 80% of new jobs. The U.S.Bureau of the Census reports that of 113.4 million non-farmprivate sector workers in 2003, small ﬁrms with fewer than 500 workers employed 57.4 million (50.6%). Firms with fewer than100 employees employed 41.0 million (36%).
As we look carefully at small business, we see that the culture is vastly different from what we expect to ﬁnd in the large and well-establishedorganizations. The United States Small Business Administration (SBA)is clear that most small business fails because of a lack of capital andlack of planning. Lenders and banks issuing lines of credit are insistenton the small business owner having a business plan,
and they will oftenguarantee the line of credit with an attachment on the real property of the small business owner rather the business for which the business plan was prepared. One wonders, then, how much value the business planhas if the line of credit is not based on the plan but on the market valueof the owner’s home. In any case, the purpose here is not to investigatethe banking industry but to determine the strategy that a business mustdevelop before a viable business plan can be created. We look at the development of the strategic plan in plain businesslanguage, using project management tools to ensure clarity and a system-atic approach. We also take into consideration the cultural aspects at play in any organization, especially the small business organization, regardlessof where it may be located or the customer base it has. We invite you to join us in our investigation of several issues involved in the creation of