Small Business Categories

Small Business

At present, small business forms an important portion of all the economic and financial activities happening all over the world. Small business plays a significant role behind the industrial development and industrial diversification of a country, which result in economic growth.

Small business can be termed as that type of business, which has a limited number of workers or employees. The definition of small business varies from one country to another, however, in the United States, if the number of employees of a business is less than 100, it is regarded as a small business. On the other hand, if the number of employees of a business is less than 50, it is considered to be a small business in the European Union (EU). Small scale businesses can take the form of a partnership, privately owned corporation, or sole proprietorship concern.

In order to categorize small businesses, a number of methods or criteria are utilized, for example, yearly sales or turnover, valuation of assets according to the balance sheet, net profit, headcount, and balance sheet totals. Some of these methods are also adopted in the European Union.
Small business is also sometimes referred as small-scale business. The small scale businesses are a general form of business in a large number of countries according to the economic infrastructure that is prevailing there. Examples of small scale business are convenience stores, small shops like a delicatessen or bakery, tradesmen, hairdressers, lawyers, accountants, solicitors, guest houses, restaurants, small-scale manufacturing units, photographers, and many others.

Usually, small businesses are independent in nature.
The small scale businesses can be broadly categorized into the following types:

• Small scale industrial undertaking
• Ancillary industrial undertaking
• Tiny enterprise
• Enterprise by women entrepreneurs

The advantages of small scale businesses are the following:

• Small scale businesses require low expenditure and can be done on a part-time basis
• Small scale businesses are more flexible and adaptable to change
• Small businesses are suitable for Internet marketing
• The small business owners have a close relationship with their clients or customers

Small Business Categories

There are five different classes of small business: (1) service businesses, (2) retail businesses, (3) construction firms, (4) wholesales, and (5) manufacturers. What kind of business would be the most attractive career choice for you? Let’s review the industries:

1. Service business. You are already familiar with the services provided by dry cleaners, travel agencies, lawn-care firms, beauty parlours, and other services that cater to you and your family. In your career search, be sure to explore services such as hotels/motels, health clubs, amusement parks, income tax preparation organizations, employment agencies, accounting firms, rental firms of all kinds, management consulting, repair services (for example, computers, robots, VCRs), insurance agencies, real estate firms, stock brokers, and so on. There are many exciting careers available in such firms.

2. Retail businesses. You have only to go to a major shopping mall to see the possibilities in retailing. There are stores selling shoes, clothes, hats, skis, gloves, sporting goods, ice-cream, groceries, and more. Do any of these retail stores look like interesting places to work?

3. Construction firms. Drive through any big city and will see huge cranes towering over an empty lot where major construction is taking place. Would you enjoy supervising such work? Visit some areas where construction firms are building bridges, roads, homes, schools, buildings, and dams. There is a feeling of power and creativity in such work that excites many observers. How about you? Talk to some of the workers and supervisors and learn about the risks and rewards of small construction firms.

4. Wholesalers. Have you ever visited a wholesale food warehouse, a wholesale jewellery centre, or similar wholesale firms? If not, you are missing an important link in the small business system, one with much potential. Wholesale representatives often make more money, have more free time, travel more, have more fringe benefits, and enjoy their jobs more than similar people in retailing. Check it out.

5. Manufacturing. Of course, manufacturing is still an attractive career for tomorrow’s graduates. There are careers for designers, machinists, mechanics, engineers, supervisors, safety inspectors, and a host of other occupations.

There are thousands of small farmers who enjoy the rural life and the pace of farming. Small farms are usually not very profitable, but some that specialize in exotic crops do quite well.