Small business report Essay Example | Topics and Well Written Essays - 2000 words

Small business report - Essay Example The results will be concluded and then recommendations will be provided based on the problems identified in the analysis stage. There is no one single, consistent definition of small business that is widely accepted. Therefore, there are different definitions for different sectors and regions. It is the objective nature of the business that defines the small business. In 1971, the Bolton Committee put down the two separate definition of small business with respect to economic and statistics. The economic definition stated that the small business is one that is relatively small share in the market, true owners run the place with no management structure and were independent. Whereas the statistical definition stated that the definition varied across the sectors. It said that manufacturing and construction were defined by the number of employees, retailing and services by turnover and road transport by number of vehicles. For example: A manufacturing businesses is considered small if it employs less than 200 employees (Storey, 1994). This perspective stated by Wynarczyk et al. said that the small firms will be different from the larger firms with respect to three important dimensions: uncertainty, innovation and evolution. The definition did not take a good pace in the minds of the researchers (Storey, 1994). Another definition of small businesses is laid down by the European Commission. They developed a new term ‘small and medium enterprises’ to define small businesses. This definition is invariant irrespective of the sector and region and uses only one variable, employee, to define the term. It stated that: The Bolton Committee definition faced severe criticism on several grounds. And therefore, the definition put forward by the European Commission supersedes all the other definitions and is most commonly used these days. The research suggested that most economists use their definitions of small business which they deem