For the vast majority of american businesses, organization posed no problem at all. Small businesses have always been the staple of the American economy. Like the skyline of a great city, they are overshadowed by the towering skyscrapers of big firms, but they more than make up in number what they lack in size. The vast majority of American businesses have always been small operations run by one or two individuals or a family. These individuals became the folk heroes of American economic life, the seekers after that most cherished goal of being one's own boss. In preindustrial America they dominated virtually every sector of economic activity, whether they be farmer, merchant, fisherman, innkeeper, or artisan. Predictably, many small enterprises had short life spans, perishing from poor management, bad luck, hard times, or the mortality of owners. A select few firms survived through more than one generation or succeeded so well that they became large companies.

The coming of industrialization drastically revamped the role of small business in American life. It enabled companies to produce a greater volume of goods at a lower cost per unit. As large firms applied these economies of scale, they pushed smaller competitors out of the industry and made it all but impossible for smaller rivals to enter.