There is certainly a viable point that small businesses within an economy are a major part of the financial system.
Without small businesses plugging away daily bringing in much needed tax revenue and competition to the greater economy, there would be less affluence.
This is why banks and other lending institutions must start lending again to small businesses and bring them back from the brink of bankruptcy.
The legal definition of “small” varies by country and by industry. In America, the Small Business Administration establishes small business size standards relating to each industry, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most non manufacturing businesses.
In the European Union, a small business is defined as having less than 50 employees, but the real clincher here is that in Australia, 15 employees or less is deemed as a Small Business.
As you can see, there is a vast difference in what is defined as a small business around the world.
At the end of the day, governments and large conglomerates should not squash and punish the smaller businesses. They need to support them and bring them some much needed support especially in times of recession.
Small businesses and what they mean to the economy
There is certainly a viable point that small businesses within an economy are a major part of the financial system.
Without small businesses plugging away daily bringing in much needed tax revenue and competition to the greater economy, there would be less affluence.
This is why banks and other lending institutions must start lending again to small businesses and bring them back from the brink of bankruptcy.
The legal definition of “small” varies by country and by industry. In America, the Small Business Administration establishes small business size standards relating to each industry, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most non manufacturing businesses.
In the European Union, a small business is defined as having less than 50 employees, but the real clincher here is that in Australia, 15 employees or less is deemed as a Small Business.
As you can see, there is a vast difference in what is defined as a small business around the world.
At the end of the day, governments and large conglomerates should not squash and punish the smaller businesses. They need to support them and bring them some much needed support especially in times of recession.