When the end goal is to provide ample support for small businesses, it would only make sense to actively arm yourself with a suitable knowledge of what a small business is by definition. We may have already said this before but small businesses are the lifeblood of a lot of communities—even if they do not realize it themselves.
We want to take this opportunity to lay down a clear clarification of what small business is.
Why Learn About It?
Before you throw your support toward any concept of cause, it is critical that there be a rudimentary understanding of the precepts behind it. This helps not only those that you are supporting, but you ultimately help yourself.
A ‘small business’ is not limited only to the size of its employees. It could have something along 1500 employees and still be called ‘small’. This, however, primarily depends on the industry that they are in. Those that are in the food business cannot have 1500 employees and still claim to be small. Every industry has their own sets of definitions for what they consider as small.
What is generally agreed upon is the fact that a small business needs to be something that:
- Is established for the purpose of obtaining profit
- Is currently registered with their local and national registry
- Does not have any ties to any large or previously established entities
- Does not dominate any particular market that they are presently in
If your business falls under any of the descriptions above, congratulations—you have a small business!
As You Can See…
A small business is more than just your mental visualization of a tiny bakery or a “mom and pop” corner store. While you are not inherently incorrect in your initial assumption, it would still ultimately be better for everyone if your perception and understanding of the concept shifted and grew. How are you supposed to support something that you did not understand?