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Small Business Essays

A small business is a business that is privately owned and operated, with a small number of employees and relatively small number of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. The definition of the term “small business” can vary from country to country. For e. g. In the U. S. the Small Business Administration generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most non manufacturing businesses.

The European Union generally defines a small business as one that has fewer than 50 employees. In Australia, a small business is defined as one with fewer than 15 employees. According to Nepal’s Industrial Policy, small business is any business apart from traditional and cottage industry that employs more than nine staff and has an investment starting from Rs. 200,000 and fixed assets going up to Rs. 30 million. The examples of small business include: convenience stores, bakery shops, hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, etc.

Though it is called a “small” business, running a small business takes a lot of time and effort. In today’s economic climate, managing a small business has been a complicated and complex task due to unstable economy, few investment opportunities, and a strong sense of competitive nature in the corporate world. Small business owners are responsible for managing all aspects of their company. Business owners use management skills to accomplish the goals and objectives of their company.

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