ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1, 500 employees). For example, according to the SBA definition, a roofing contractor is defined as a small business if it has annual revenues of $16.5 million or less.

Detailed explanation-2: -What is a small business? The Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. For industry-level small business size standards used in government programs and contracting, see https://www.sba.gov/ document/support–table-size-standards.

Detailed explanation-3: -Not only are small businesses driving the U.S. economy, but they also keep the American dream alive. According to the U.S. Small Business Association (SBA), small businesses of 500 employees or fewer make up 99.9% of all U.S. businesses and 99.7% of firms with paid employees.

Detailed explanation-4: -A company with fewer than 100 employees is generally considered a small-sized business, while one with between 100 and 1, 500 employees is a medium-sized business.