Small business is a term that is used day-to-day. That is because in the past decade the rise of small business has been larger than in any other decade prior. This is largely due to the increasing number of services that are available to small business owners, to enable them to keep their business running.
There really isn’t any guidelines for when the term small business is used, however it is simply defined as a business which has a small number of employees. How few employees is debatable, and the definition of when a business changes from a small business to a larger corporation varies both by country and industry.
The owners of a small business typically invest their own capital into the operation of the business and may also take out loans to further finance operations.
Small businesses due to their nature, are in most times sole proprietorships, partnerships, or privately owned. Small businesses in many countries include service or retail operations such as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers or tradespeople (e.g., carpenters, electricians), restaurants, guest houses, photographers, very small-scale manufacturing, and Internet-related businesses such as web design and computer programming.
Some professionals operate as small businesses, such as lawyers, accountants, dentists and medical doctors (although these professionals can also work for large organizations or companies). Small businesses vary a great deal in terms of size, revenues and regulatory authorization; some small businesses can be found in several countries worldwide (e.g., corner shops).
Running a small business is an exciting venture, and a great way to introduce yourself into the business world, and to gain business sense. By definition and tradition, small business owners tend to be close to their customers, both physically and emotionally. Their success is driven by their ability to build meaningful relationships with their customers.
They are often local merchants selling products or services at a single location. The decisions they make are based on what is best for their customers, not necessarily themselves or shareholders. They feel a sense of responsibility toward their communities and want to give back whenever possible.