Micro, Small And Medium

1895 Words Dec 1st, 2014 8 Pages
A small business will employ less than 250 employees as it is a company that is independently owned and “is not dominant in its field of operation” (Bovée and Thill, 2008). There are three aspects: micro, small and medium. A microbusiness will have a turnover of less than or equal to £2 million and will employ between 1-9 employees (see appendix 2). On the other hand, a small business will have a turnover of less than or equal to £10 million and will employ from 10 – 49 employees and lastly a medium business will employ from 50-249 people and have a turnover of less than or equal to £50 million (BMG Research, 2013). Small businesses have been defined as such due to their annual revenue and/or number of employees which was defined by the SBA (U.S Small business administration).
Small businesses play a vital role within the economy, for example even though most small businesses don’t have many employees those that do are able to employ millions of people and they are able to create at least 60% of new jobs (Williams, 2013). However in 2013 the report suggests that small firms account for 99.9% of businesses within the UK economy (Gov.uk, 2013). Small businesses are able to provide “33% of private sector turnover” found by Federation of Small Business figures cited in Williams, 2013. Small businesses are also able to create 65% of new jobs (see appendix 1). The great thing about small businesses is the new innovation that it comes with, they are able to provide new products…
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