A business may feel large or small, depending on factors like building size, customer to employee ratios, and so on. Actually being defined as a small business in a legal sense, though, has more defined parameters. Deciding to stay a small business or working toward growing into a big business — that all comes down to the personal choice of a business owner.
The legal definition of a small business would likely surprise many readers. A business that has $7 million in annual generated revenue and 500 employees, depending on the industry, could still count as a small business. The numbers can go even higher for industries such as railroads and certain food services. When talking about small business, that’s not going to be what the average person thinks of. Most often, they’re imaging a small store with an employee count that doesn’t hit double digits and brings in a moderate amount of money. A business owner might have a different perspective on these numbers, but for the 95 percent of business owners that make up small businesses, they might still seem odd.
However, when thinking about how large certain businesses and industries are in America, those businesses can certainly seem small in comparison. Wal-Mart Stores was reported to have generated over $350 million in revenue; a big enough difference to bring to light what kind of scale is in effect here.
Growing to become a big business may take much more time and effort than a business owner was originally anticipating. But for some, the challenge may be worth it. For others, the business may expand over time, but the owner will have no problem remaining in the rather large parameters of a small business.