How do you classify a business as small? To qualify for the U.S. Small Business Administration, the organization needs to employ less than 500 people, whereas in the EU, the numbers of employees have to be 50 or less. This is one criteria on which it is possible to classify a business as small. It is also possible to classify it on the basis of sales, profits etc.
The advantage of a small business is that it doesn’t need too much of an initial investment. It can also be done by a group of people after their day jobs are over. It doesn’t require too much of its owners. Also, the owners of a small time business are not restricted or confined to any rules. They can do their work as and when they please. They are not answerable to anyone.
