Small Business Online Training Network.
SBA has established numerical definitions of small businesses, or “size standards,” for all for-profit industries. Size standards represent the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business concern. In determining what constitutes a small business, the definition will vary to reflect industry differences. These size standards are used to determine eligibility for SBA’s financial assistance and to its other programs, as well as to Federal government procurement programs designed to help small businesses. Also, the Small Business Act states that unless specifically authorized by statute, no other Federal department or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard meets certain criteria and is approved by the Administrator of SBA.
Classifying a business as small or large can impact its ability to qualify for financing, certification and potential contracts. Determining the difference between the definition of a small business and a large business depends on a number of factors, including the type of business, number of employees and annual receipts, each calculated over various periods of time.
Small firms are better communicators and know their customers better.
Small businesses – those with 500 employees or less – remain an essential piston of America’s economic growth. After the number of startups dropped to record lows in 2009,they bounced back 12% in 2011. Small businesses accounted for 42% of US private sector payroll in 2012 and 63% of new jobs, according to the Small Business Administration. And as business professors, we three have recently watched entrepreneurship programs sprout like dandelions in American business schools, partly in response to students who no longer aspire to an organization-man (or woman) career.
Despite this surge in interest, running a small business remains a bumpy road. About 10% to 12% of small businesses close each year and there’s only a 50/50 chance a new small business will survive to see its fifth birthday. As the success of behemoths like Google GOOG 0.73% , Wal-Mart WMT 0.10% and Amazon AMZN 0.11% shows scale confers many advantages in business. Which should prompt every small businessperson to ask: How can I compete with the big boys in my industry?
What does all this data Really mean?
We observed that small businesses thrive by taking on activities that big businesses aren’t good at. This can sometimes be at time a double-edged sword. Big firms have groups of salesmen, massive marketing budgets and loads of leverage at the bargaining table and ease of accessibility to budgets. Having sales people makes small business activities easier and can happen faster. Big companies dominate the market because of consistent massive exposure and brand recognition ~ Walmarts, McDonalds,Amazons of the world, that are familiar in the minds of the most consumers
Now for the Good News!
If the SIZE does matter in the business world what are some of the advantages the smaller/ small biz have over the Google, Amazons and Walmarts. (Please Leave a comment below)Some of the benefits that I see are:
- Ease to market with product launch.
- Less red tape
- Able to quickly adapt to changing Market trends.
- Able to connect to the consumers and be a bit more personable.
- Less employees
- Small businesses get the Tax advantages like Big business.
In my humble opinion as a small and home based business owner we have a lot of upside to what we do as well. All we have to do as a small businesses is to find our niche(s) and claim our market share. Finding your market share may be the first step.The next step would be maintain and grow that share. Remember at one point and there was no Google, Amazon or Walmart. Maybe your small business will lead this world into next era or evolution and change the world. A benefit of a small business is to be able to network locally within the neighborhoods and communities.
Get as much Online Training and support as possible. As a small business we have got to stick together and support each other as much as possible. Your market is calling you.