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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.


Let us know what you think of the article by posting a WEnote below, for example:

  • For me, the difference is …
  • I was surprised to read that …

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