The number of employees that determines whether a business is considered small varies by country and industry. Here are some key definitions:
- In the United States, the Small Business Administration (SBA) generally defines a small business as having fewer than 500 employees , although this number can vary by industry and some small businesses may have up to 1,500 employees depending on the sector.
- In Canada, a small business is defined as having between 1 and 99 paid employees ; businesses with 100-499 employees are medium-sized, and those with 500 or more are large.
- In Australia, the Fair Work Act defines a small business as one employing fewer than 15 employees , although some statistical agencies use a threshold of 20 employees.
- The European Union often defines a small business as one with fewer than 50 employees , with medium-sized businesses having fewer than 250 employees.
In summary, the most common threshold for a small business in many places, including the US, is under 500 employees , but it can be as low as fewer than 15 employees depending on the country's legal or statistical definitions. Industry and other factors also influence the exact number. If a more specific region or industry is of interest, please specify for a more precise definition.