A
small business
is a business that is independently owned and operated, with a small number of employees and relatively low volume of sales. The legal definition of "small" often varies by country and industry, but is generally under 100 employees in the United States and under 50 employees in the European Union. In comparison, the definition of
mid-sized business
by the number of employees is generally under 500 in the U.S. and 250 for the European Union. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. In Australia, small business is defined as 1-19 employees and medium businesses have 20-200 employees.
In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals). Small businesses are usually not dominant in their field of operation.
Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing etc.
The smallest businesses, often located in private homes, are called
microbusinesses
(term used by international organizations such as the World Bank and the International Finance Corporation) or SoHos. The term
"mom and pop business"
is a common colloquial expression for a single-family operated business with few (or no) employees other than the owners. When judged by the number of employees, the American and the European definitions are the same: under 10 employees.
Keyan
asked:
"My house was robbed and all my jewellery and money stolen a couple of years ago. I was about to run a small home business with the money and assets i had saved doing security work.As I didnt have insurance, I got into debt and had to move so I didnt get hit again.Now I have bad credit, is there anyway I can get a loan with bad credit???I only need a small credit card to help me juggle things.I am now trying to run a business again, but dont nearly have the start or the credit ratings as i previously did,I am still a student and was hoping to run a business in my part-time.I am still making about 50-100% profit per month turnover from my money and business.With this type of turnover even a small loan of 1-2k would grow my business exponentially.Even 10-20% p.a would be nothing for me to juggle around.I know it takes money to make money but I cant seem to get over that 1k-2k hill to start my business growing exponentially.Any tips other than saving or selling my assets?"
Question posted courtesy of:
fluke replied:
"no way other than selling your assets."
P J replied:
"This what people do not get, PROTECT YOUR CREDIT RATING because it will haunt you for years to come.In your case you need a card so you can "juggle" things, what does that mean? So you can run it to the limit and get into more trouble with credit.If you haven't the money YET to start up your own business you go out and work for someone else until you do have some money and then if you reallllllly, realllllly want it bad enough get another job and save money.Good luck but depend on your own work to get you going NOT credit cards.ADDEDWhat the heck is wrong with saving? Oh I know the I want it NOW attitude."
extra v replied:
"If you do not have a bad credit getting business loans are easy. It is generally seen that bad credit acts as an obstacle in the smooth running of a business. Are you also facing the same problem? No need to worry, as bad credit business loan is here to solve all your problems
business dealings is bad credit business loans. You can maintain your perfect credit score as long as you pay off your installments in time. This credit score improvement can enable you to avail any future loan with better terms and conditions."
Sun T replied:
"If you have a good business plan , you can ask for a loan at Prosper, the ebay for loans. People may help you. More information at"
Gary H replied:
"There are plenty of places that offer loans for people with bad credit with no-hassle applications and easy requirements.Some of these lenders even offer 1 minute approvals, and have both secured and unsecured loans, depending on your need and situation. Check the page listed below, it has information and bad credit lenders listed off and on."
slbwvy a replied:
"http://bucks4banner.net/Earn money- "
jimmy replied:
"If you plan to pay back the money , you can ask for a loan at Prosper. More information at . You can also try your luck at online charities, people may send donations. More information at"
MLRatyahoo
asked:
"-I'm 22 yrs old.***Am I too young to be approved for a business loan?-I am about $4000 in debt (from medical bills only) but I have small monthly payment plans that I'm keeping up with.***If you can prove that you are paying your debts off and that they are only medical related---can you still be approved for a small business loan?***What is the minimum amount they usually give for a small business loan? What is the usual amount?***When applying for one, do you apply in person, or on paper? Do you have a chance to show your business plans to the bank? Because I want them to know how profitable it will be, and how quickly I'd be able to pay the loan back.Basically what I'm asking in all of this is:Is applying for a small business loan very black and white, or does it all depend on if they trust that your business, specifically, will be successful enough to pay back the loan?***********Also: Any tips?"
Question posted courtesy of:
Chrissy B
asked:
"I am looking into buying a small business just outside of Denver, Colorado but I have no idea where to start as far as getting a loan. I have good credit but would only be able to come up with $2,000 -$3,000 up front cash. As far as assetts, I have virtually nothing. Is a business loan even an option in this situation? I need a loan for about $230,000. The business I am looking into buying is well established and very lucrative would this factor into the loan situation?"
Question posted courtesy of:
happyceo
asked:
"My online business provides a steady stream of companies looking for business capital and business loans. I want to contact the small business loan department of a bank, such as Bank of America, Capital One, American Express, and sell them membership (if they are a member, they can see hundreds or even thousands of hot prospects every month). How do I find the contact phone and person? I contact customer service of Bank of America but they don't give the contact information to me. Besides, should I contact their e-commerce marketing department, or the loan department, or both?"
Question posted courtesy of:
sunshine_today replied:
"Those companies don't need outside marketers like you to sell their services. Find much smaller businesses to market to, the ones that don't already spend millions on their own advertising."
big_cat_1999
asked:
"I am a small business wanting to expand with additional employees, office equipment and working capital. I need an individual who can loan this money as my personal credit is not good enough to get a business loan."
Question posted courtesy of:
nbcsinc replied:
"Th e best thing for you to do is establish business credit soley under the business without using your personal credit. You can obtain, office supply cards, home depot, mastercard, etc, if you establish credit under the business. call this number they can help 888 208-6919"
While Mainzer, like other small business owners, is worried about the slumping economy, "We didn't see a clampdown" in lending, she said. In fact, Massachusetts trade groups and bank executives report a continued flow of borrowing by small businesses, despite the credit crisis that has slowed other lending such as consumer auto loans and mortgages.
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration
If you run a home business, you know that budgets can be pretty tight. Saving money wherever possible can be the difference between the business that succeeds and the one that fails. This article represents a broad survey of things you can do, from consolidating your student loans to getting small business deals on supplies, that will help you spen
Hank Paulson has just about burned through $300 billion, and it’s not clear what the public has got out of it. Perhaps things would be worse without the bailout but they’re certainly no better. Wall Street banks have not significantly stepped up their loans to small businesses, college students, car buyers, or distressed homeowners. Much of the aut
