Small Business Write For Us
A small business is a corporation, partnership, or sole proprietorship that has fewer employees (and generally lower revenue) than larger companies. The exact legal definition of a small business can vary from place to place and often depends on the business’s industry.
The us Small Business Administration uses size standards to define businesses as “small” to determine their eligibility for federal funding programs. Standards vary by industry, so a company can have up to 1,500 employees and still be classified as small.
According to the U.S. Census Bureau, there are 33.2 million small businesses in the United States in 2022, accounting for 99.9% of all businesses nationwide. Businesses with fewer than 20 employees represent 32.5 million small businesses, of which 27.1 million have no employees at all, meaning the only worker is the owner.
Who are Small Business Owners?
According to the SBA, men own 56.8% of small businesses, women own 38.3%, and the remaining 4.8% are owned equally by male and female partnerships. Women are more likely to own service-based businesses, while men are more likely to own product- or technology-based businesses.
In addition to the number of employees, the SBA considers other factors that help determine whether a company is a small business:
- Is the company based in the USA?
- Do you primarily operate in the US?
- Is it a for-profit company?
- Is it independently owned and operated (and not owned by a parent company)?
- Are you a minority player in your industry (instead of having a large market share)?
Why does that Matter?
Official small business recognition can help a company compete for government contracts, if necessary. There are government contracting opportunities that are specifically reserved for small businesses, meaning only a small business can win them.
More importantly, a small company generally has very different operational problems than a large corporation. Small businesses tend to find it harder to borrow money, can focus on servicing a local or regional geographic area, and often have far less red tape (and that’s a good thing) than their larger siblings.
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