WHAT IS A SMALL BUSINESS? 5 THINGS YOU SHOULD KNOW
November 17, 2011
We refer to a small business and think about an entrepreneur working alone or with a few people. That image is definitely spot on and your not alone. However, I think you might be as shocked as I was by the stats that I found on small businesses. So here’s how the Small Business Administration defines small businesses and home based businesses.
1. A small business is privately owned and operated.
2. In the USA, a small business has less than 500 employees in manufacturing or less than $7 million in annual receipts in non-manufacturing businesses. However, there seems to be industry-by-industry standards. Maybe more important than the size standards might be the “Definitions” of a business. It might prove interesting to visit the SBA website.
3. The census shows that 51.7 percent of all small businesses are home based as of 2010. Interestingly enough, these do not include businesses that are actually run out of a home office, but the work is done offsite, for example landscaping businesses, consulting firms that visit their clients and IT professionals that work at their customers offices. To be a home based business, according to them, 100% of the work needs to be done in the home. Considering this detail, there are many more home businesses.
4. Another interesting fact is that 80 percent of all new jobs are created by small business. Employment is on the rise in the small business sector. Good to know if one is job hunting.
5. If you’re a home based business you’re in good company. Here is a small list ofbusinesses started at home:
Ford Motor Company
Mary Kay Cosmetics
Yankee Candle Company
Many of the above list didn’t actually start at home, they were exiled to the garage. Google wasn’t even started in Lsrry Page’s or Sergey Brin’s own garage, they borrowed one from Susan Wojcicki. Lotus Cars was started in a stable.
While there are many challenges to working from home, many people are able to overcome them to succeed beyond our wildest dreams. Others just support themselves and their families nicely.
THE MORAL OF THE STORY
It doesn’t matter what a small business is or where it started. It’s where you end up that counts!
If you have any ideas or points to add, please don’t keep them to yourself. We’d all love to hear from you. Thanks.
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