When you think of small business, you probably picture your local shops or bodega, your hairdresser, the coffee spot down the street, or a local marketing agency. You may also think of a small manufacturing company or the contractor you hired to install your kitchen backsplash. Small businesses are everywhere, employing millions of people across the country. But what exactly does it mean to be a small business? The government, in this case the Small Business Administration, sets the rules for how a business is defined as small. These standards can vary by industry, but usually include fewer employees and less revenue than large companies.
Whether you’re just starting out or looking to expand your company, we have everything you need to make your small business succeed. We’ll help you with everything from important definitions to expert growth tips and more.
Why you should know this:
Small businesses have a distinct advantage in the marketplace because they’re often closer to their customers and clients. This can allow them to respond quickly to changing consumer demand, and build stronger relationships with their audience. It can also give them the freedom to be true to their own voice and mission, something many successful entrepreneurs, like Oprah Winfrey and Sophia Amoruso, have done.
It’s important to keep in mind, though, that not every business that qualifies as small is a true small business under the government’s guidelines. That’s because the legal structure of your company is another factor that can play into whether you meet these size standards. For example, a sole proprietorship allows you to sell products and services under your own name without incorporating—and this can affect your tax status.