A small business refers to a privately-owned and operated company that is typically characterized by its relatively limited size in terms of revenue, number of employees, or both. The definition of a small business can vary depending on the country, industry, or specific criteria used (e.g., number of employees, annual revenue, or industry standards).
In the United States, for example:
A small business is generally defined as having fewer than 500 employees, although certain industries (e.g., manufacturing or retail) may have higher thresholds.
Characteristics of Small Businesses:
Lower Revenue: Small businesses often have lower annual revenue compared to larger enterprises.
Fewer Employees: They typically have a smaller workforce, ranging from a handful of employees to a few hundred.
Flexibility: Small businesses are often more flexible and adaptable, allowing them to quickly pivot to market changes or innovate more freely.
Local Focus: Many small businesses serve local communities, offering personalized customer service and tailored products or services.
Independently Owned: They are independently owned and not part of larger corporations or franchises.
Challenges: Small businesses often face challenges like limited access to capital, regulatory burdens, and market competition with larger companies.
Examples of small businesses include local retail shops, restaurants, service providers (like plumbing or consulting firms), and tech startups.
