Small business

Small business - is entrepreneurship, which is carried out by subjects under certain market economy established by the laws, state or other representative organizations.

As world practice shows, the key indicator on which the enterprises of various organizational and legal forms relate to small businesses, is the average number of workers employed during the reporting period in the enterprise. A number of scientific works at a small business means the activities carried out by a small group of persons, or entity controlled by one owner. Typically, the most common criteria on which the Company relate to small business is:

- Number of employees
- The size of the authorized capital
- Turnover (profits, revenue)
- The value of assets

According to the World Bank, the total number of indicators by which enterprises are small businesses (business) exceeds 50. However, the most commonly used criteria are those that are described above. Almost all countries the determining criterion is the number of employees during the reporting period.

For example, in the European Community are those small businesses that do not exceed the following indicators:

- The number of employed up to 50 people.
- An annual turnover of less than 4 million ECU
- Balance sheet total of less than 2 million ECU
For medium-sized enterprises in the EU are those that do not exceed:

- The number of employed workers from 50 to 250 people.
- An annual turnover of less than 16 million ECU
- Balance sheet total of less than 8 million ECU.

Consider how to include small businesses to advanced economies and learn what the world of small business experience.

In the UK classification of enterprises to small businesses based on the data of turnover and number of employees (of different sectors of the economy). To include the smallest firms employing 1 to 25 people., To small - from 25 to 99. In the manufacturing industry are considered as small firms with employment of less than 200 people, while trade is a company with an annual turnover of less than 400 thousand pounds. According to the Law "About Us" in the UK small business must meet two of the following criteria:

1. turnover of not more than 2.3 million ECU
2. assets of no more than 1.5 million ECU
3. average number of employees up to 50 people

In Germany, a certain concept of small business is missing, but in accordance with the classification of the Federal Ministry of Economy to include small firms employing up to 49 people. and an annual turnover of less than 1 million marks. Small and medium-sized firms - are companies run by legally independent owners directly involved in production., Fully taking on the economic risk and funding their activities, usually without credit funds.

In France are considered as small enterprises in which the number of employees does not exceed 500 people. and an annual turnover before taxes, estimated at the time of closing of the final balance of less than 200 million francs. And in various industries firm size is estimated differently. If in agriculture and food industry firms with employment over 200 people. considered large, the equipment manufacturing industry threshold number - 500 people.

In Sweden, the system referring to small businesses similar to the French, but there's still acting and such factors as the stage of growth , industry affiliation, geographic scope, the specific characteristics of the owners and managers ( women entrepreneurs, foreigners ), the types of problems specific to the enterprise.

In the United States federal found that small firm - a company which has one or more owners, employing no more than 500 people., Value of assets is not more than $ 5,000,000 and annual revenues of up to $ 2,000,000. Depending on the number of employees they all businesses in the United States are divided into:

- Minimum - 1 - 24 employees
- Small - 25 - 99 employees
- Intermediate - 100 - 499 employees
- Large - 500 - 999 employees
- The largest - 1000 and more employees

It should be noted that here, as in many other countries, plays the role of enterprise and industry structure. And in some industries plays a decisive role the number of employees ( manufacturing and mining ), and in others - the value of turnover (construction, trade, services). Norms are different criteria for companies operating in different sectors of the U.S. economy. In the U.S., small enterprises are operated by independent owners and not occupying a dominant position in the commodity markets.