About Small Businesses

Small businesses generally have less than 20 employees. Even though the business itself is small, it is not limited in how much income it can bring in, unless it is a service-related business. Service-related businesses can only bring in as much money as it has employees to do the work.

Significance

Small businesses, if not undercut by large businesses, can be a huge part of the economy. A retail small business can benefit by specializing in a certain type of product, as opposed to trying to carry many different products, because it can't compete with the prices of large stores.

Types

Small businesses can be anything from a local car repair shop to a small retail establishment offering specialty American-made items or handmade items. It can also include local restaurants, independent gas stations and convenience stores, laundromats, car washes and medical service providers.

Geography

Small businesses are located throughout the world. There is no limitation on what can be considered a small business, and a small business can operate anywhere there is a market for its services or products.

Features

Small businesses cater to their customers more than a large company can. Often, the owner works in the business, and is on a first-name basis with many of his customers. Prices at small businesses may be a bit higher than at a large store, but products and services, which are not offered in bulk, generally tend to be higher in quality.

Effects

Small businesses bring jobs to the local economy. While one small business may only hire one to ten people, many small businesses in an area provide quite a number of jobs, thereby strengthening the economy for the local area. If the general population visits small businesses, it keeps money in the local area, giving the area a higher economical status.

Resources

• Small Business Association