Quote:
Originally Posted by Barry-xlovecam
The US SBA definition of a small business is around less than $38.5 million in annual revenues ... (For government set-aside contracts for small business.)
The IT SMB definition is under $50 million in annual revenues -- small sized business, +$50 million to $ 1Billion in annual revenues -- medium sized business.
I would consider the cut off as Small business is up to $100 million annually, Medium business is $100 million to $1 Billion annually.
Current and new product development is one way -- acquisition and/or merger is the other.
I don't think of anyone here as big business as that would be over $1 Billion a year in revenues.
Real question is how to move from being a micro-business, 95% of US businesses are in this class, with balance sheets of less than $2 Million, to being a substantial small business -- I think the right answers are a lot of working smart and a bit of good fortune. Choosing the right trends to develop product for is probably the ladder up. I always try to remember that there are fewer good ideas than the money chasing them.
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If you consider 100m the mark then, out of 550,000 firms founded in the US, .02% - .05% of US firms reach the "medium sized business" mark. Quite a high bar!
"Anywhere from 125 to 250 companies per year (out of roughly 552,000 new employer firms) are founded in the United States that reach $100 million in revenues. "
According to IDC, small businesses have an average revenue of 3.6m/ annual (because so many have almost no revenue) and
Represent more than 99.7% of all employers
Employ half of all private-sector workers and 39% of workers in high-tech jobs
Provide 60% to 80% of the net new jobs annually
Pay 44.3% of total U.S. private payroll
Produce more than 50% of nonfarm private gross domestic product, or a GDP of roughly $6 trillion
Source: SBA
"The Office of Advocacy defines a small
business as an independent business
having fewer than 500 employees"
Who in adult has 500 employees? Anyone? Additionally, only .3% of US businesses have more than 20 employees.
The EU has a category "microbusiness" that you use above for a business that has less than 10 employees. I agree with you we should have that in the US, because over 97% of businesses have less than 10 employees.
The data also agrees with you, the real hump is going from zero to over 10 employees. Now I know several people with businesses in the 10-19 size, and they bust their asses. They're all handsome, smart, hardworking, socially capable people. The difference between them and larger business owners is, IMHO, lack of ruthlessness and lack of access to capital.