The Concept of Small Business

There is no definition inclusive of the small Business and varied scientific outlook and the process are in, because the small term project "Small Business" carries its aspects among many questions, including:

Type of small-scale project
small business startup
Minimum and maximum employment by
Minimum and maximum investment
Distribution of project products
Relationship with the small export
The small capacity of the project
Quality products, small-scale project
Form of management and administration in these projects
Level of technology used in small-scale project
The form of small-scale project in terms of legal
Realistic picture of the project (factory house and workshop)

The Concept of Small Business

All of these criteria from our point of view contribute to defining the concept of small projects, and we can say that the concept of small-scale project is a project that does not depend on technology-intensive in general, Small business is the foundation in carrying out the number of labor no more than five members of the maximum capital of ten thousand to fifteen thousand pounds, there is no separation between ownership and management (owner of the project is run by) is characterized by simplicity and local products designed to cover up the local environment needs export a later step.

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Objective of the small Business:

Range goals of small projects, including:

What is aimed at profitability
What is intended to provide employment opportunities
What is aimed at achieving social returns
What is aimed at raising the level of service
These goals may be combined together. It is scientifically is often small-scale project the primary objective of profitability and in the fastest time due to the small and limited capital investment.

Capital of small-scale project:

The small Business recoil is a young man starts its first steps in life. And thus limited its investments and the capital in fixed assets is low (land buildings equipment). In fact, small-scale project that seeks to recover the money in as little time as possible.

Level of technology and machinery:

Given the weakness of the financial capacity of small enterprise owner is often the technological level is a relatively advanced user; also characterized by limited tools and machines used, and often manual and highly dependent on the skill of the workers. Because of small and micro basis in Handcrafts, and thus no essential role for technology-based tools and machines.

Number of employees in small-scale project:

As we advance the concept of the project small and micro. The most important characteristics of small businesses lack the number of employees. There is no specific measure is reliable in this area due to the difference from one country to another in Japan, for example: The project is small if the number of its employees less than 50 people. And from 50 to 99 is considered a legitimate medium and more is one of the large-scale projects and in the United States when the number of employees working less than 25 it is considered a small project.

Some expert see that your craft project is a small business if it is less than ten individuals. When you see in the others, in its definition of the project as a  small Business , which employs less than 50 people, and so there is no clear measure of a specific number of employees in the small Business .

Possibilities for a small Business :

These possibilities include:

Production capacity
Energy storage
The volume of purchases
Services provided to workers
Management experience in marketing
Planning and Information Systems
Financial decisions

This is the limited possibilities in the small-scale project, and stick to personal characteristics of the owner and the extent of scientific expertise and rehabilitation.

The degree of proliferation:

Produces small-scale project is limited and is often the consumers of this production in the framework and limits of the project area, this means that the degree of proliferation of the project small Business is very limited.

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