The reason why many new businesses are established is because the owners get sick of working for others. Setting up on their own can be difficult but very rewarding when everything comes together. Some keep expanding, growing an ever bigger business.
Every global conglomerate or multinational organisation was once a small business. Usually this involved somebody with a trade deciding to go it alone. This is as true for Bill Gates before Microsoft as it is for an accountant leaving a large firm to service his local clientele.
If you have a skill, be it as an accountant, a plumber or a computer programmer, if you want to set up in business you must be confident that you can attract work and administer a business yourself. This can be very challenging, but there are some who realise that they are much better at running the business than they are at doing the work! These people will see more money to be made by employing technical and support staff to do the day to day work while they strive to bring in new customers and manage the business.
Taking the accountant as an example the reasons behind this development can be seen. The successful, dynamic and entrepreneurial person will no doubt have reached a reasonably senior position within the accounting profession by the time he or she feels that working for others is too constraining. They will be used to a reasonable living and the fees that they would have to charge their clients to match this when working for themselves.
The administration work is much too mundane for them to spend their valuable time doing. They are better employed charging the clients the high hourly rate. This results in there being an incentive to employ a secretary. At the same time a lot of the repetitive work could easily be done by someone with less experience and the need for assistants seen. As the enthusiastic business owner builds up the business even further he may begin to realise that more efficiency could be gained if additional staff spent time sharing his duties of winning work and supervising junior staff.
Before long he will have hired at senior staff level and even brought in new partners to share in his ownership of the firm. It will not be long before the entrepreneur ceases doing any accounting whatsoever and spends all of the time on strategic management such as negotiating mergers and acquisitions of other accounting firms and thus growing the business even more!