The definition of a small business can vary depending on the context, country, and sometimes the industry. Generally speaking, a small business is an independently owned and operated company that is limited in size and revenue relative to larger competitors. In the United States, the Small Business Administration (SBA) provides specific size standards, which vary by industry but often classify a small business as one with fewer than 500 employees for manufacturing and mining industries, and less than $7.5 million in average annual receipts for many non-manufacturing industries.
Internationally, definitions can differ. For example, in the European Union, a microenterprise is defined as having fewer than 10 employees and a turnover of less than €2 million, while a small enterprise has fewer than 50 employees and a turnover of less than €10 million.
It is essential to consult the guidelines of the regulatory body relevant to your industry or locale for precise definitions, as they consider factors like employee count, annual revenue, and balance sheet totals to categorize businesses appropriately.