There is no doubt that small business has its problems, just as does big business, but small business is no more a bundle of problems exclusively than is any other type of human activity. Our interest in the problem approach is mainly threefold:

1. To caution prospective entrants into the fields.
2. To seek a classification of these problems that will be of practical use to prospective small businessmen.
3. To suggest certain areas where remedies in the form of public action may be needed.

No doubt some of the problems of small business are purely relative. This makes difficult to generalize, especially since our definitions are rather arbitrary and loose. For this reason it will be necessary to visualize a typical small business, one representative of its class. It seems desirable to attempt a classification of the problems if our threefold purpose is to be effected. The following three way division appears to meet this need:

1. Problems characteristic of most small businesses because of the type of individuals who frequently enter these fields.
2. Problems resulting from conditions at any period of time, such as laws unfavorable to the little fellow, discriminatory financial policies, and unfair competition that could be remedied to lesson the burden on small business.