What is the definition of small businesses in USA?
Small businesses are categorized industry-wise and are defined based on their turnover apart from considering the employee strength. Very small size entrepreneurs are also considered in this segment. There is a detailed list available for such standards from the website of US Small Business Administration.
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorship. The legal definition of “small” varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most non manufacturing businesses. In the European Union, a small business generally has under 50 employees.
