What is a small business?

Let’s have a look at some definitions:

• Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation^[1].
• A privately-owned and operated business with relatively small turnover and staff numbers, typically seen as constituting part of a specific commercial or economic sector^[2].
• Firms of a certain size which fall below certain criteria (that varies from country to country) in terms of annual turnover, number of employees, total value of assets, etc.^[3]
• A small business is one that is independently owned and operated, exerts little influence in its industry, and (with a few exceptions) has fewer than five hundred employees^[4].

So the definitions allow for a wide variety of businesses to be defined as small businesses, and criteria vary from one country to another.

Is a small business owner an entrepreneur?

Is every small business owner an entrepreneur and vice versa?

Read this short article which outlines the differences. Remember don’t skip the readings, they are a required part of the course.

• Are You a Small-Business Owner or an Entrepreneur? The Difference Is Important.

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References

1. ↑ Wikipedia
2. ↑ Your Dictionary
3. ↑ Business Dictionary
4. ↑ US Small Business Administration