Small business facts for kids
A small business, sometimes called a mom and pop store by some in the United States, is a business that is privately owned and operated. They have a small number of employees and do not sell many things. Whether or not the law says that a business is "small" is different in different countries and industries. The Australian Fair Work Act 2009 says that a small business is a business with less than 15 employees. In the European Union, to be called "small", a business must have less than 50 employees. In the United States, a business must have less than 500 employees to qualify for some Small Business Administration programs.
Small businesses are common in many countries. Some examples include: convenience stores, other small shops (such as a bakery), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming.
Good things about small business
A small business can be started at a very low cost. It also does not need to be open all the time.
Independence is another good thing about owning a small business. Being able to operate by themselves is a good thing for small business owners. Small business owners can make their own decisions about what they want to do with their company. However, entrepreneurs have to work very long hours and understand that their customers are their bosses.
Many organizations in the United States also give help to small businesses, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.
Problems for small businesses
Small businesses often face a lot of problems because of their size.
Another problem for several small businesses is the fact that much larger businesses can influence their chances for success.
Images for kids
Small business in Bursa, Turkey. One of the claimed advantages of small business owners is the ability to serve market niches not served by mass production industries. Consider how few major corporations would be willing to deal the risks and uncertainty that small antique store deals with: buying and selling non-standardized items and making quick assessments of the value of rare items.
Small business Facts for Kids. Kiddle Encyclopedia.