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What is a small business?
Home » Small Business » Being Successful...In a Small Business » What is a small business?According to the United States Small Business Administration (SBA), a small business is defined in the Small Business Act as “one that is independently owned and operated and which is not dominant in its field of operation.” The SBA has established numerical definitions for all for-profit small businesses with what are called “size standards,” which are stated either as a number of employees or average annual receipts of the business. These standards vary by industry.
There are many different government and business definitions of what a small business is. By some legal definitions, a small business is one which has fewer than 500 employees, and by other definitions, a small business has fewer than 100 or even 50 employees.
Small businesses can include everything from a home-based sole proprietorship to small scale manufacturers. Typical small businesses include hair salons, attorneys, accountants, restaurants, real estate companies, mom and pop shops, bed and breakfasts, and consultants.
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