What is considered a small business?

Question

whats the difference between a small and large business?

what makes them different?

Answer 1

The difference pretty much depends on who is writing the definition of "small business".  Every agency has their own definition, sometimes tailored to ensure certain business qualify.

Generally, the best definition to use is the Small Business Administration.  Even then, it may depend on the industry and the size of the companies in that industry.  This is probably a flawed example, but Joe Blow Oil Company, with one small capacity refinery and a couple of dozen oil wells, would probably be considered small in the oil industry.  But their annual revenue might be enough to make them a large player in other industries such as retailing.

The SBA defined a very small business as one with less than 15 employees, or revenue less than $1,000,000 per year for one program.  Other programs may have different levels.