Web Definition: Small Business
A small business may be defined as a business with a small number of employees. The legal definition of small often varies by country & industry, but is generally under 100 employees. These businesses are normally privately owned corporations, partnerships, or sole proprietorships. Small businesses are common in many countries, depending on the economic system in operation. small shops, hairdressers, solicitors, lawyers, accountants, restaurants, guest houses, photographers. Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is under capitalization. This is often a result of poor planning rather than economic conditions, it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example if the prospective owner, thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available.
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