what defines a small business

The definition of a small business varies depending on the industry and country. In the United States, the Small Business Administration (SBA) offers a detailed explanation of what constitutes a small business. According to the SBA, a small business is a corporation, partnership, or sole proprietorship with fewer employees and typically lower average annual revenue than larger businesses. The SBA defines a small business based on specific industries, and the definition varies by industry. For example, in the roofing contractor industry, a business is considered small if it has annual revenues of $16.5 million or less, while in the Asphalt Shingle and Coating Material manufacturing industry, a business is considered small if it has fewer than 750 employees. The SBA defines a small business as a concern that is organized for profit, has a place of business in the US, operates primarily within the US or makes a significant contribution to the US economy through payment of taxes or use of American products, materials, or labor, and is independently owned and operated and is not dominant in its field on a national basis. Other viewpoints exist on what makes a business "small," such as the number of full-time employees or the property it operates from.