Official definitions of a “Small Business” vary from country to country and industry to industry.
The definition is usually based on number of employees. It varies by industry as it is often based on a company’s relative size compared to its competitors. It can also be judged on revenue as well as a variety of other criteria.
In Australia a small business is said to have less than 15 employees, whereas many government assistance programmes for Small Businesses in the USA state they must have less than 5,000 employees.
The advantages of being a small business are often overlooked because the precarious nature of competing against larger companies. Being able to change and adapt to overcome problems quickly is something larger companies are often unable to do however, while small companies can (and must) do it frequently.
Author: Justin Driskill
Justin is the founder of The Online Advertising Guide and a freelance Digital Projects Manager.