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Showing posts from March 15, 2013

What Is A Small Business?

What is a small business? 

Well, everyone knows that, don’t they? 

Well, don’t we???

Actually, there is no widely accepted definition of a small business that I can find.  If you own a business with 100 employees, and I own one in the same industry with just two, your business looks pretty big to me.  Yet you consider yourself small because just down the road is another business with 10,000 employees.

To the Better Business Bureau a small business is any company with fewer that 100 employees.  

To the Small Business Administration, it’s whatever size congress specifies, including corporations as large as American Motors some years ago. 
According the IRS, a small business is any for-profit enterprise with fewer than 500 employees, a definition which makes 99+% of all U.S. businesses small businesses.   According to this standard, less than 1% of the businesses in our economy are mid-sized to large. 

This seems rather an extravagant definition when you consider that only 11% of al…