A Small Business Summary

Small business is a term that is used day-to-day. That is because in the past decade the rise of small business has been larger than in any other decade prior. This is largely due to the increasing number of services that are available to small business owners, to enable them to keep their business running.

There really isn't any guideline for when the term small business and many even interchange it with terms like SMEs or, Entrepreneurs. However it is simply defined as a business which has a small number of employees. The actual number is debatable and the definition of when a business changes from a small business to a larger corporation varies both by country and industry. This number is generally less than 100 employees. In Jamaica, according to the MSME & Entrepreneurship Policy 2013, the term is based on annual sales and turn over. Based on the policy, “Micro Businesses have no more than 5 employees and no more than $10 million in sales; a Small Business has 6-20 employees and has annual sales of $10-50million while Medium Sized Firms have between 21-50 employees and achieves $50-$150 million in annual sales.”

Yet due to their nature and size, these firms are in most times sole proprietorships, partnerships, or privately owned. Common in many Caribbean countries, small businesses, are most often sole proprietors and includes graphic artists, beauty professionals (hairdressers and Barbers), restaurants, consultants (accountants, marketing professionals, etc), small shops, tradesmen, solicitors, farmers, small-scale manufacturing etc.

They often start in private homes, for two main reasons. The first is because it is economical since overhead expenses are kept at a minimum. The second reason these business owners believe that they will elude the ‘tax-man’ if their operations are covert and kept at home.

Running a small business is an exciting venture, with a myriad of ups and downs. However, if done properly, the advantages are great and the notion of financial freedom is well worth the risk. If you are interested in starting your own small business, I would recommend having a talk with a local lawyer or accountant, who will be able to answer questions that are specific to your local area. Good luck with your new venture!