Small business facts for kids

Small businesses on Dalrymple Street in Greenock, Scotland

A small business is a company that is owned and run by a private person or a small group. These businesses usually have only a few employees. They also don't sell a huge amount of products or services.

What counts as "small" can be different depending on the country. For example:

• In Australia, a business with fewer than 15 employees is often called small.
• In the European Union, a small business has fewer than 50 employees.
• In the United States, some programs help businesses with fewer than 500 employees.
• In India, businesses with less than ten employees are part of the "unorganized sector."

What Are Examples of Small Businesses?

Small businesses are very common all over the world. You probably see them every day!

Common Types of Small Businesses

Here are some examples of small businesses:

• Local Shops: Like a convenience store or a small bakery.
• Service Providers: Such as a hairdresser or a photographer.
• Skilled Workers: People like tradesmen (plumbers, electricians).
• Professionals: For example, a lawyer or an accountant.
• Food and Stay: Many restaurants and guest houses are small businesses.
• Online Businesses: This can include web design or computer programming.
• Small Factories: Some places that make things are also small businesses.

Why Are Small Businesses Good?

Small businesses offer many benefits, both for their owners and for communities.

Easy to Start

One good thing about a small business is that it can be started with less money. It also might not need to be open all the time. This can make it easier for people to begin their own company.

Being Your Own Boss

Another great part of owning a small business is being independent. Owners can make their own choices about their company. They decide what to sell and how to run things. However, people who start businesses often work very long hours. They also learn that their customers are very important.

Help for Small Businesses

In some places, like the United States, organizations help small businesses. For example, the Internal Revenue Service has resources to guide them.

What Problems Do Small Businesses Face?

Even with many good points, small businesses can face challenges because of their size.

High Costs

In the United States, small business owners often worry about costs. These can include insurance prices and high energy bills. Taxes can also be a big concern for them.

Competing with Big Companies

Another challenge is dealing with much larger businesses. Big companies can sometimes make it harder for small businesses to succeed. They might have more money or more ways to reach customers.

Images for kids

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  Small businesses in the Central Zone of São Paulo

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  Portici di Sottoripa, Genova, Italy. Galleries often have many small businesses.

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  Small business in Bursa, Turkey. Small businesses can serve special needs that big companies might miss.

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  An example of looking at keywords for online business.

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  Small businesses in Biloela, Central Queensland, Australia, in 1949.