As National Small Business Week approaches, here is what we know about small business:
In the United States, the definition of a small business varies by industry. In general, companies with fewer than 500 employees and less than $7 million in revenue are considered small by the Small Business Administration. Other government agencies establish size standards on an industry-by-industry basis, too. In addition to this, many small businesses self-certify as small when they register as a federal contractor in the System for Award Management (SAM). In terms of legal structure, small business can take on many forms: a sole proprietorship, partnership, or corporation, among others. Many small businesses are very independent, relying on their own knowledge and experience rather than on a manager or board of directors to make decisions. As a result, they may have a higher risk of failure, and in some cases, owners put their life savings on the line. They also have less access to capital and might be more vulnerable to economic changes than larger firms. On the other hand, they have closer relationships with customers and clients and can respond to changing marketplace demands more quickly than their larger counterparts.
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