A small business is a privately owned corporation, partnership, or sole proprietorship with fewer employees and lower annual revenue than a regular-sized company. A small business may also qualify for certain government support programs and tax policies if it meets the U.S. Small Business Administration’s (SBA) official standards, which vary by industry.
These size standards are based on the average number of full-time and part-time employees, along with the annual receipts of a company. The SBA sets these standards on an industry-by-industry basis, so it’s important to determine whether your business qualifies before you apply for a business loan or bid on contracts with federal agencies.
Whether you’re an expert in your field or just starting out, it’s never too late to turn your small business into a success story. Entrepreneurs with bold ideas and strong branding can transform their businesses into multi-million dollar brands. Sophia Amoruso, the founder of Nasty Gal, started her company as a vintage fashion seller on eBay before launching her $100 million apparel brand. She continues to share her entrepreneurial spirit as the founder of Girlboss, an organization that empowers women entrepreneurs.
Small businesses are a vital component of the American economy, and they contribute to job creation across all industries. In fact, most Americans say that small businesses have a more positive impact on the economy than big banks or government agencies. Ultimately, the key to small business success is focusing on the customer and being flexible when faced with challenges.
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