Small businesses can be found in a wide variety of industries. Some examples of the more common small business categories include retail stores, service operations, manufacturing, and hair salons.
In general, a small business is a privately owned enterprise that has less than 500 employees. The size standard is based on revenue. It can vary based on industry and state statutes.
For example, Oregon uses several different definitions to classify a small business. They include the number of employees, average annual gross receipts, and other related terms.
The US Small Business Administration (SBA) sets the standards for small business classification based on industry. This is how you qualify for government loans and contracts.
A small business may be an independent contractor, a partnership, or a corporation. The US SBA defines a small business as one that has fewer than 500 employees.
In general, a small business generates lower profits than larger firms. This is due to the cost of operating the business and the need to run day to day operations.
However, a small business can respond to changes in the marketplace more quickly. It also offers the potential for greater economic benefits through economies of scale.
Another useful small business item is the use of social media to reach new customers. Social networking websites such as Twitter and Facebook allow for 24-hour access to information about your business.
Managing a small business can be a lonely task. You need to be aware of how to best utilize these resources.