What is a Small Business?

A small business is typically defined as a privately-owned corporation, partnership, or sole proprietorship that has a limited number of employees and generates relatively low revenue compared to larger corporations. Small businesses are often considered the backbone of the economy due to their contribution to job creation, innovation, and economic growth.

Characteristics of a Small Business:

• Size: Small businesses have a limited number of employees, with some jurisdictions defining the upper limit of employees as high as 500.
• Revenue: Small businesses typically have lower revenue compared to larger corporations, with some industries having revenue caps for classification as a small business.
• Independently owned: Small businesses are usually independently owned and operated, with one person or a small group of individuals making key decisions.
• Local focus: Small businesses often serve local communities and operate within a specific geographic area.
• Flexibility: Small businesses are known for their flexibility and ability to adapt quickly to market changes.

Overall, small businesses play a vital role in driving innovation, creating jobs, and fostering economic development in local and global economies.