Given that the term “small” is relative in the business world, because it depends on several factors including the economic, social and demographic characteristics of each region, country and even city, it is essential to take into account the following considerations before answering this basic but fundamental question:
In several countries, taking into account a limit number of people who can use the small business to be considered as such. This limit varies from one country to another and from one industry to another, for example, U.S. industry in manufacturing the maximum number of employees can be within the range of 500 to 1,500 depending on the type of product manufacturing, whereas in wholesaling the maximum number of employees may range from 100 to 500 depending on the particular product that is supplied . In the case of Mexico, has a limit of 50 industrial and service workers and 30 for trade , in Colombia, the limit is 50 jobs and in Peru is 20 .
Some countries take into account other factors that are important in the definition of “Small Business”. For example, in the United States also limit people take into account the fact that small business is one that is operated independently , created to be profitable and is not dominant in its field of operation . In the case of Argentina, is considered small company to one that does not exceed a ceiling of annual sales, which depends on the sector to which it belongs (agriculture, industry and mining, trade, services or construction) . In the case of Peru, a small business is one whose number of employees and annual sales value does not exceed a certain amount.
Thus, taking into account these considerations, we will answer the question what is the small business? with the following universal definition of small business :
“Small business is an independent entity created to be profitable, which dominates the industry to which it belongs, whose annual sales in securities does not exceed a certain threshold and the number of people that comprise it does not exceed a certain limit, and like any company, has aspirations, achievements, material goods and technical and financial capabilities, all of which allows you to focus on production, processing and / or services to meet specific needs and wants in society”