This essay entails the United States Small Business Administration in the analytic and practical skills to venture in such areas. Small Business Administration ensures that the government protects all the firms that are below the average set limit for a bigger firm.
Small Business Administration analytic and practical skills
Firstly, the purpose of this assignment is to provide an opportunity to apply the concepts in a real life situation and in
the process, develop analytic and practical skills.
Secondly, the data are from the US Small Business Administration yearly report from 2007. The first column shows
ranges of firm size for the different categories (firm size refers to the number of people employed by a given
firm). For each firm size range, you will find the number of firms that fit within that range as well as the total
number of people employed in that range. For example, in the 5-9 employees range, there are a total of
1,060,250 firms and 6,974,591 employees divided among those firms.
Thirdly, you must find the midpoint of the firm size range shown in Column A. Do this by finding the average between
the minimum and maximum of the range. For the final category (5,000 and up), use 20,000 as the midpoint.
Parts of this project can be completed earlier in the course as the topics are covered. Doing the part that relates to
the current material as it is covered will help you keep the project on track instead of having a large volume of
work to do at the very end.
A successful report should contain the following elements:
Forthly, determine the correlation between each of the pertinent data labels and justify why this correlation should be
calculated and interpret the correlation you found. You can show correlation visually as well, but you must
include the numerical calculations. Since Column F. Mean Pay Per Employee is calculated from Column D
Also, column E has the average annual wages for an employee of that firm size. So for the firms with 5-9 employees, on average, an employee earns$31,889.98 annually in wages. Column F shows the amount of revenue received by the firms in the given size.
Lastly, continuing with our example, in the 5-9 employee category each firm made on average $1,079,870. Column G
shows the revenues a company makes per employee they have. For the firms with 5-9 employees, each
employee brought in about $164,157.33 in revenue for the firm. Column H shows the total amount a firm spent
on wages to employees.
In conclusion, for a firm with 5-9 employees, the firm would spend a total of $63,401.86 per year on wages to employees.