Read about: A Description of Small-scale Business

Read about: A Description of Small-scale Business

Small Scale Business Characteristics

Most of the small businesses will stay small as its character is and not become a large corporation, a barber shop can have one seat or ten but never a chain store, not even two stores. Some businesses are typically small operations, like the barbers they generate enough money for its owners to have a decent living. Some characteristics set apart this small-scale business from the larger but yen small-business.

Old time general store

Lower Revenue and Profitability

SBA classifies businesses for the specific amount of revenue. Small-scale companies are those with the lower revenue, depending on the business type, the maximum revenue allowed for small business designation is set at $21.5 million per year for service business. How SBA Determine Your Business

Total revenue and net profit do not have strait relativity. A small-scale business often own the assets it uses like the facilities and equipment it uses. Being the owner of those assets gives leverage to the business by keeping low the costs.

Old times General Store

Few Employees:

Being small scale business means a small team or a few workers who are easy to control and bring to be efficient. A few workers can run the small-scale business while a one hundred employees business in no longer a small scale business.

Small Market Area

Small-scale businesses are small not only in money, the space they need for the operation can be much smaller than the corporations. A convenience store in a rural township serves only a few local people is a good sample for a small-scale business. Market like farmers market has a really small operation. A butcher in a small town too is a small enough to be called a small-scale business. An industrial small-scale business can easily grow to a higher classification if it can sell out of the community.

Old timers, a store and a car

Sole or Partnership Ownership and Taxes:

Forming a corporation for small business will not be a good idea. Small-scale business will be more comfortable with a sole proprietorship form of organizations or partnerships and limited liability companies. The forms mentioned above are easier to manage for the owners with a minimum of hassle and low expenses in the formation, and tax managing as taxes are managed together with the person filing.


Fewer Locations:

The small-scale businesses are located in limited areas like retail stores, small office or like many online services from a home office with an Internet connection, a PC and maybe a printer.

Small-Scale Business description:


Some small-scale businesses can be located at a flea market or shopping centers booth areas. Other like a computers repair shop can be found in a retail shop. Mostly having one owner and his shop.

Some sell franchised products, and others make their product to sell. They can be the owners of their time, opening at the time they feel it is better for sales or the other occupations they may have.

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Startup Costs are low

The initial costs for starting up a small scale business are relatively low; it depends on the type of business you are going to start, the business model and what kind of product you are going to sell. A flee market business will need the money to buy the stuff and pay for the spot he is going to use at the market time. If the product is homemade, you will need the materials for making the goods. In the case of tax consultation, you can use phone and internet or visit your client’s place, no big deal of expenses and invest in having phone and internet connection 


The small-scale business nature is small in the volume of business and not too much equipment, so moving to a new location is easy to set up and tear down or load on a U-Haul and move to where the clients are. Establishing in the new place can be simple too. If your shopping mall has open days you can get it all in one trip, put a desk and products on it. Take your Mobil P.O.S and start selling, Small credit card terminals and portable cash registers are perfect for these needs.


Usually small scale business has a few workers or none. Those how to get to do a good job can become a part of the owners family. It frantically happens that they have only part-time or just for hot sales time like Christmastimes for some businesses or summer time for beach-related business. Sometimes the owners are in-front of the managing and sales are made by employees that do have the talent to make sales. The 5 Employees Every Small Business Needs

Cannot afford to pay wages since a majority of the profits goes back into the business or pays for the owner’s expenses. As such, owners often staff small-scale businesses themselves, allowing them to keep whatever profits they make.