Industries that Attract Small Business (1 of 2) Retailing and Wholesaling Retailers acquire goods from producers or wholesalers and sell them to consumers Services Service sector includes businesses that do not actually produce tangible goods (80% of U.S. jobs) Retailers acquire goods from producers or wholesalers and sell them to consumers. Main streets and shopping centers and malls are generally lined with independent music stores, sporting-goods stores, dry cleaners, boutiques, drugstores, restaurants, caterers, service stations, and hardware stores that sell directly to consumers. The service sector includes businesses that do not actually produce tangible goods. The service sector accounts for 80 percent of U.S. jobs, excluding farmworkers. Real-estate, insurance and personnel agencies, barbershops, banks, television and computer repair shops, copy centers, dry cleaners, and accounting firms are all service businesses. © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Industries that Attract Small Business (2 of 2) Manufacturing Manufacturing goods can provide unique opportunities for small businesses (like customizing products for customers) High Technology High technology describes businesses that depend heavily on advanced scientific and engineering knowledge Manufacturing goods can provide unique opportunities for small businesses. Small businesses sometimes have an advantage over large firms because they can customize products to meet specific customer needs and wants. Such products include custom artwork, jewelry, clothing, and furniture. High technology is a broad term used to describe businesses that depend heavily on advanced scientific and engineering knowledge. People who were able to innovate or identify new markets in the fields of computers, biotechnology, genetic engineering, robotics, and other markets have become today’s high-tech giants. © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Types of Stores that Attract Small Businesses Retailing and wholesaling stores Music stores Sporting goods stores Drugstores Restaurants Service sector businesses Bank Barbershop Real estate You know what a retailing firm does; it acquires goods from producers or wholesalers and sells them to consumers. Many small business retailers can be found in most places in and around communities in the United States. Small business retailers include independent music stores, sporting-goods shops, dry cleaners, drugstores, and restaurants, just to name a few. Entering a retailing segment is considerably less expensive than setting up a manufacturing enterprise. This is one major reason why so many entrepreneurs are attracted to retailing enterprises. Service sector businesses include real-estate, insurance and personnel agencies, barbershops, banks, television and computer repair shops, copy centers, dry cleaners, and accounting firms are all service businesses. Services also attract individuals—such as beauticians, morticians, jewelers, doctors, and veterinarians—whose skills are not usually required by large firms. Notice that dry cleaners is both an example of Retailing and wholesaling stores as well as service sector businesses; the different industries are not mutually exclusive and businesses can be examples of multiple industries. © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 15