Small business is entrepreneurship that is based on the activities of small firms or enterprises that are not formally part of any association. Today this form has become quite widespread.
Instructions
Step 1
The main distinguishing feature of small businesses is their limited number of employees. In accordance with the laws of the Russian Federation, the number of employees at the enterprise should not exceed one hundred people over the past year. Micro-enterprises are also distinguished, which include companies with less than 15 employees.
Step 2
Another equally important distinguishing feature is revenue. It should not (for small businesses) exceed 400 million over the past year (excluding VAT), and for micro-enterprises it should not be higher than 60 million.
Step 3
Today, creating your own small business is becoming easier, as the state actively helps start-up entrepreneurs, because small and medium-sized businesses are one of the most important sectors of the economy of any progressive country.
Step 4
For small businesses, such a concept as franchising is acceptable. It allows new, small companies to operate on the technologies of large corporations. Unfortunately, this concept cannot be applied to all industries in which there is a small business. But it is actively used in trade, tourism, as well as in public catering systems.
Step 5
One of the distinguishing features of a small business from a large one is the degree to which the owner or investor of the business is involved in the business of the company. As a rule, when it comes to small businesses, the owner is an active entrepreneur (otherwise, a businessman). While in large companies, the investor only provides initial capital, and a person who is already specially trained in this is directly involved in the business. This state of affairs also entails how businessmen with small businesses relate to business. Very often, when they make a decision, the emotional factor prevails over the calculation, which often ends badly. Also, due to the fact that small companies have limited access to the capital market, they cannot use a large number of tools, unlike large enterprises.
Step 6
The scarcity of capital is heavily reflected in things like quality advertising. Very often you have to give up on it and use the cheapest ways to attract customers, and this, in turn, affects the revenue. And low capitalization reduces the attractiveness of enterprises in the investor market. Thus, obtaining capital becomes even more difficult process.
Step 7
Despite the fact that today the state is trying in all possible ways to help small business, its construction is still a rather difficult process, not accessible to everyone.
