Small Business

What is small business?

A small business is a privately owned corporation, partnership, or sole proprietorship that has fewer employees and/or less annual revenue than a regular-sized business or corporation. 

The number of employees is one of the most widely used measures for defining a small business. Depending on the industry, a small business could be defined as a business with a maximum of 250-1,500 employees. However, small businesses can be classified by other methods, such as annual revenues, shipments, sales, assets, or by annual gross or net revenue or net profits.

Small businesses can apply for government support and qualify for preferential tax policy depending on the country and industry. 

Small businesses can use different sources for start-up capital:

• Self-financing by the owner
• Loans from friends or relatives
• Grants from private foundations, government or other sources
• Private stock issue
• Forming partnerships
• Angel investors
• Loans from banks, credit unions, or other financial institutions
• SME finance.

Learn more: How to Start a Small Business