what is small scale business

A small scale business, or small business, is a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a regular-sized business or corporation. Small businesses are characterized by a limited number of employees and a limited flow of finances and materials. There is no single cutoff to distinguish small from medium or large businesses, and different government agencies and private organizations rely on different sets of criteria when talking about a small enterprise. However, the U.S. Small Business Administration defines a small business according to a set of standards based on specific industries. Small businesses can include service or retail operations such as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers or tradespeople, restaurants, motels, photographers, very small-scale manufacturing, and Internet-related businesses such as web design and computer programming. Small businesses can be started at a low cost and on a part-time basis, while a person continues a regular job with an employer or provides care for family members in the home. In developing countries, many small businesses are sole-proprietor operations such as selling products at a market stall or preparing hot food to sell on the street, which provide a small income. Small businesses play an important role in the economy and can contribute to job creation and economic growth.