SMALL BUSINESSTuheen Tarafder

Poonam Barve

Concept & Definition A small scale business is a business which is privately owned and operated, with a small number of employees and relatively low volume of sale. They are privately owned corporations, partnerships, sole proprietorships. They are classified in to other methods such as sale, assets, or net profits. Small business are common in many countries, depending on the ecosystem in operation. For Instance: convenience stores, and other small stores like kiranas, bakery, tradesmen, lawyers and accountants etc.

What is Small Business? An independently owned and operated business, organized for profit and that is not dominant in its field. Qualifying as a small business depends on the industry in which the business operates and the organization that selects the standards. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. The legal definition of "small" varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees in the European Union, and fewer than 500 employees to qualify for many U.S.

Examples of small business includes following: Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured. Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided. Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided. Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided. Special Trade Construction: Annual receipts may not exceed $7 million; and Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

Characteristics of Small BusinessSome of the characteristics of small Business includes following: Entrepreneurial spirit Limited Managerial skills Low cost per job created Size definitions Demographics Franchise Business

Entrepreneurial Spirit The Owners of small business enterprise should have motivation, optimism, energy and desired to get succeed. They are not scared of risk and they take calculated, yet high risks.

Limited Managerial Skills Management broadly includes planning, leading, organizing and controlling across all the major activities of a business. Small business owners generally have one (or a few) strong skill sets. Skills in important areas of finance, sales and marketing, technical, production, human relations etc are generally lacking.

Low cost per job created Small businesses collectively employ a lot of people and comparing the amount of money invested in small businesses. The cost per jobs created is way lower than big business. Small businesses work using people, whilst big businesses work using systems.

Size Definitions The legal definition of "small" varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-byindustry basis. generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most nonmanufacturing businesses. In the European Union, a small business generally has under 50 employees.

However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has under 500 employees in the US, 250 in the European Union and fewer than 200 in Australia.

DemographicsAccording to a survey run in the United States among businesses having