How To Define A Small Business

Table of contents:

How To Define A Small Business
How To Define A Small Business

Video: How To Define A Small Business

Video: How To Define A Small Business
Video: What is Small business? Explain Small business, Define Small business, Meaning of Small business 2024, March
Anonim

When organizing their own enterprise, future managers do not know what criteria can be used to define a small enterprise, which has a number of advantages over medium and large ones.

How to define a small business
How to define a small business

It is necessary

  • - data on the company's revenue for the calendar year;
  • -information about the number of employees.

Instructions

Step 1

As the law says, small businesses are commercial organizations, in the capital of which the share of participation of religious and charitable organizations, public organizations and other bodies of the Russian Federation does not exceed twenty-five percent, the share that belongs to a person who is not a small business entity also does not exceed twenty five percent.

Step 2

To determine whether the company is small, look at the data on the company's revenue from the sale of goods and services for the previous calendar year: for small businesses, this figure should not exceed 400 million rubles.

Step 3

Also find out the number of employees in the company. The condition for the maximum number of workers when attributing an enterprise to a particular class depends on its field of activity.

Step 4

So, if your field of activity is small business, your company must meet the following conditions (the number of employees is calculated as the average for a calendar year): - if the company belongs to the transport, industrial or construction industry, then its staff should not exceed one hundred people; - if the company belongs to the scientific, technical or agricultural sphere - it can employ no more than sixty people; - if the company belongs to the wholesale trade - the number of employees should not be more than fifty people; - if the scope of the company includes retail trade and consumer services population - no more than thirty people should work for it; - if the enterprise specializes in other industries and carries out other types of activities - the staff should not exceed fifty people.

Step 5

Also, if possible, find out the share of the company's working capital in relation to its fixed assets. For small businesses, this ratio is much higher than for large ones: usually it is about 20:80 for a small one versus 80:20 for a large one.

Step 6

Also find out if the business is inherited by the owner's family. If so, most likely it is a small business, since this happens very rarely in the case of medium and large businesses.

Recommended: