Small businesses, depending on size, require little capital to start. A small business owner can rapidly respond to market changes and to the needs of customers, which can be easier to determine as small business owners have direct contact with people who buy their products. A major benefit of a small business is that a small business owner may feel a certain degree of independence, i.e., they are their own bosses. Small business owners also reap the benefits of any success their enterprise has, and they make the decisions for themselves. This degree of responsibility appeals to many small business owners, especially those who began by working for someone else.
On the other hand, small business owners often have to make considerable investment in their enterprise to make it work. Many small business owners take out multiple mortgages on their homes and borrow large amounts in small business loans in order to raise the capital needed for startup or to get through the first years of business. Additionally, even though small business owners have no boss as such, they are directly responsible for dealing with customers, which can be very daunting. Obviously, no guarantees exist that a small business will work, and when they are unsuccessful the results can be devastating for entrepreneurs and their families. Finally, small business ownership takes a great deal of work, usually involving much longer hours than working for someone else.