Small Business |
Businesses are run by both big business houses and also by the individual or a group of individuals.
Individuals or even an individual may run businesses with an aim to earning financial gains. The financial gains earned by a Small Business farm may are generally very limited. Small Business is operated by a limited number of employees. In every country there is a separate definition of Small Business. The word small denotes the sense that the business house will be run by such number of employees which is much less than the number of employees in a big corporate hose or even a medium size business house. But the definition of Small Businesses fixed by the law of a government vary from one country to another country. In a country like United States of America to be recognized as a Small Business farm a farm should have less than 100 personnels working in it. But in the European Union or EU the definition of Small Business is entirely different. In the European Union to be considered as a
Small Businesses house a farm doing businesses for profit should not have less than 50 employees.
Definition of the Small Business units are also determined by other ways. Not only the number of employees but other factors which determine the definition of the Small Business farm include a factor like net profit earned by a business farm. Sometimes the definition of a businesses farm is also determined by the total asset value of the business farm. The total amount of annual sale of a country or
the annual turnover of a business farm also sometimes determines the definition of the businesses farm. Different countries of the world follow different types of method of determining the character of a business farm. European Union follow the following criteria for defining a business house
Balance sheet totals of the business farm
Turnover of the business farm
Head count of the employees working in the farm
Though the process of determining the definition of a business farm may differ from one country to another country but the area of operation of the Small Business farms are mainly the same. Most of the Small Business farms of the world operate in the following fields
Very small manufacturing units
Photographic units
Guest houses or hospitality industries
Restaurants or other eateries
Accounting farms
Lawyers farm
Solicitors farms
Retail trading units
Hairdressers
Small shops
Convenience stores
Bakery
Delicateseen
Small Business houses are often run from the homes. The Small Businesses which are even run from
the houses are even called micro businesses. The term micro businesses is an internationally accepted term. This term is used by the organizations like International Finance Corporation or World Bank.
The Small Businesses are also known as mom and pop business in many parts of the world as this kind of business can be run by the members of a family. In this type of business there is no such employee who is not an owner.
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