NFIB Answers the Question: What is Small Business?

Answer #1: A group that understands meaningful reward is not possible without risk

In anticipation of National Small Business Week, the nation’s largest and oldest small-business advocacy group is seeking to provide answers to the question: What is small business?

Today’s installment takes a look at the special economic and cultural role small-business owners play as risk-takers.

In an increasingly risk-averse society, America’s entrepreneurs stand out today more than ever before as an example of the positive outcomes that can come from risk-taking. Their willingness to take the enormous financial and personal risk involved in starting a business distinguishes small-business owners from other economic and cultural groups.

A look at an NFIB member in Austin, Texas exemplifies the risk-reward relationship that is uniquely obvious and attractive to entrepreneurs:

When they decided to open Carlot-Solutions, Aimee and John Marnell put everything they had on the line. They risked and invested both personal savings and invaluable time and energy. They knew they were taking a big risk, but that still didn’t stop them from pursuing the dream of business ownership by following John’s passion of auto mechanics and utilizing Amy’s business savvy from years of working in the mortgage industry.

“The first two years were tough,” says Amy. While building their customer base, Amy and her husband lived on extremely tight cash flow, dramatically changed their lifestyle and postponed other personal goals.

Amy describes the motivations for the Marnell’s to start a business – and stay in it through the tough times – as a desire to “spend more time with each other” and their family, the ability to have “freedom,” and to be “independent.” She explains the pros and cons of independence as: “There is no fall guy, if someone doesn’t like your business, then they don’t like you, so it can be difficult. However, at the end of the day, the rewards far outweigh the risks.”

For the Marnells, the rewards include the joy of working together as a couple, their relationships with their customers, and the pride that comes with creating jobs and employing people. “We made tons of sacrifices, but it’s not as hard of a sacrifice when you know who you’re supporting,” Amy says when talking about their five employees and John.

The Marnells are now in their fourth year of business and are consistently growing. They are proud to have started their business and hope to pass it down to their children. Amy says “We want our family to have the opportunity to live a good life with the freedom do what they love and the flexibility to spend time with the ones they love.”