My definition of “small business” is the means by which accumulated wealth passes from the relatively poor back into the hands of the wealthy. Twenty percent of small businesses fail their first year, and 50% of small businesses fail by their 5th year.
I realize that all small businesses are not just goods, or just services, but my imaginings are that the new entrepreneur has finally “scrimped and saved” what he or she thinks will allow them to start a successful small business. They purchase items for sale, or buy equipment to help provide a service… This is where the accumulated wealth passes back to the rich, who have an inventory of items for sale, and it doesn’t matter if the small business fails or not, the rich have made their profit.
If the small business fails, the owner is now left to sell their goods or equipment at an extreme discount… liquidate. They are now returning to their previous poor state, and can go back to work for the rich, and may even have incurred additional debt to be repaid to a bank or other lending institution.