There are 5 main kinds of commercial organizations (types of businesses) in the US:
By the number of employees they have, companies are split into:
The first 3 types are often called small and medium-sized enterprises (SMEs). Another popular identifier for business size is the annual revenue, for instance, Small and Midsize Businesses (SMBs) can be:
Broadly speaking, the U.S. Small Business Administration considers a "small business" any company that:
However, some industry-related distinctions are made, for instance apart from governmental bodies, any firm that hires fewer than 500 employees and has less than $7 million in sales is usually considered a small business. Here's a shortlist of acceptable sizes of small companies by industry:
The main difference between small businesses and self-employed is that self-employed people are the business themselves (they work alone) while small businesses are business entities (working in teams)run by an owner, who is also an employer. Instead of working alone, he/she hires other individuals to perform tasks and manages them.
There are more than 30 million small companies in the United States out of a total of 32.5 million firms. This means that small enterprises with fewer than 500 employees represent a big 92 percent of all US-based companies, while 88% have fewer than 20 employees. 40% of all businesses have under $100k in yearly revenue. If we consider a small-sized business structure any commercial formation with a maximum of 250 employees or up to 1,500 employees, then small enterprises make up a massive 99.7% of all U.S. firms.
To separate small firms for larger business entities, there's a set of features that must apply:
Sole proprietors make almost $47,000 a year, while the average small business owner has an average annual revenue of $73,000. 86 percent of small-scale business owners don't earn more than $100,000 per year in personal income. Their total yearly earnings are between $30,000 and $182,000.
There are 30.7 million small-scale business owners in the United States. Small companies:
Other insightful statistics about small businesses based in the US:
Approximately 627,000 new small businesses open each year. Statistics show that:
Based on profitability, the most successful small-scale types of business start-ups are:
Business assets are valuable items owned by a firm. Company assets can be:
In the case of sole proprietorships, the company assets belong to the sole proprietor, while for limited liability companies, where the company and the owner are two different entities, business assets belong to the company and not to the director or the shareholders. More information can be found in the asset search report.
The SBA is an independent body under the jurisdiction of the Federal government of the United States. It was formed in 1953 to help, guide, support, and protect the interests of small businesses while securing free competition among enterprises and sustaining the overall economic interests of the US. Although SBA doesn't lend money straight to the small business owners, it creates guidelines and collaborates with other lenders to provide loans to small firms.