A Small Business is any company or business that has fewer than 15 employees. Usually, when we say “small business” this refers to a corporation that has less than one million dollars in assets and has not registered a trade office. Usually, small companies are privately owned by individuals, partnerships, or sole owners that have fewer than 15 employees and/or low annual revenue than an average-sized corporation or business. These businesses can be from any industry, including communications, information technology, retail, software, energy & utilities, wholesale, and banking.
In order for a small business to establish its own unique market and image, it will need to attract consumers. In the past, many small businesses entered into contracts with local, state, and federal government agencies in an effort to become more involved with their communities. Today, more small businesses to enter into relationships with governmental agencies in an effort to develop their own consumer base. For many small businesses, this translates into customers within the communities they serve. The key to becoming successful in this type of marketing strategy is developing and maintaining strong local brand names and customer loyalty.
Another key element for many small businesses is to become Specially Certified Public Agents (SCEAs). (These are actually small businesses that have established themselves as professionals in their fields.) They are required to complete special training and continuing education classes to meet the criteria set forth by the Small Business Administration’s (SBA) Office of Specialized Training and Education Programs. Some small businesses choose not to become certified public agents. This is especially true of larger, well-known companies that can afford to hire outside help.
There are two basic types of small businesses: privately owned and independently owned. A privately owned small business is one in which the owner is responsible for all business decisions. They make all of the major financial decisions and are responsible for paying employees, marketing to customers, managing their intellectual property, etc. On the other hand, an independently owned small business is one in which the owner is not a sole proprietor, but instead is connected through some type of partnership or ownership structure. This means that they have one or more partners who are responsible for the business’s performance. Examples include food processing companies, bakeries, hotels, and professional services such as law firms. Learn more information about fire extinguisher.
Many organizations, such as the Small Business Administration and the US Chamber of Commerce, have formalized criteria for qualifying for federal programs based on the size standards established by the US Small Business Administration. The Small Business Administration has identified eleven size standards, including the Annual Locally Employed Employees (ALUE) rating, the Annual Percentage Rate (APR) of local labor income, and the Annual Percentage Rate of Total Number of Employees (ALTR) and the Average Weekly Times of Unfilled Jobs (AWMT). Additionally, businesses must also meet the requirements of the Society for Management and Supervisors (SMCS) which includes an analysis of the company’s business model and goals for two years before the examination. SMCS also requires the submission of an application package with a written management plan, performance goals, and a specific plan for achieving those goals. The Society for Professional Management (SPM) also requires certain elements of the business for review and assessment before testing is administered.
One of the reasons why small businesses exist is because of the freedom of choice that they provide to their employees. This is especially true in the United States, where small business owners are allowed to set their own working hours, develop their own work policies, and determine their own schedules and work conditions. The small business community is very concentrated, however, in the small business cities of the Midwest and South. This concentration has created a unique cultural and geographical context for small businesses in these areas. According to the Economic Policy Institute, there are twenty-seven percent more businesses located in the Midwest and South than in any other region of the country. There are over three and a half million employees in these areas, which makes it one of the most concentrated concentrations of small businesses in the United States.