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View Full Version : One frustration: "small business" what is one?



John Smith
12-16-2012, 08:18 AM
My day off from here ended when I was up early and caught a show where people kept talking about "small businesses" and how going over the cliff would impact them and/or how tax increases for incomes over $250k would impact them.

Everyone uses the term "small business", but I'm not sure those who use it are talking about the same thing.

One gentleman pointed out that a small business that makes over $250k could be hit really hard by the Obama proposed tax increase. He spoke as if that tax increase wouldbe on all the money the business makes.

I don't want this to turn into a religious thread, but the best analogy I can come up with to make my point is "Do you believe in God?" If the person asks says, "Yes", the person asking assumes both believe in the same "God" but their beliefs may be quite different from one another.

I would love to have show hosts ask guests specifically how they define "small business"

Mrleft8
12-16-2012, 08:56 AM
Good luck with that.

Todd D
12-16-2012, 09:04 AM
I run a small business. The staff - ME! I also work part time for another small business - total staff 4. I figure that when a business gets above 50 employees it isn't small any more. Also I seriously doubt that many small businesses with 50 employees are run as pass through corporations. If they are they need to hire new accountants.

SMARTINSEN
12-16-2012, 09:05 AM
Considering that we have a Federal agency to promote small business, we should not be surprised to find that there is a formal definition:



What is SBA's definition of a small business concern?

SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:


Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;
Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;
Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;
Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;
General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;
Special Trade Construction: Annual receipts may not exceed $7 million; and
Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.



from:

http://www.sba.gov/content/what-sbas-definition-small-business-concern

Mad Scientist
12-16-2012, 07:24 PM
.. .I figure that when a business gets above 50 employees it isn't small any more...

In France, the laws state (or used to) that once a business reached the magic number of 50 employees, the employer fell victim to a whole new set of (complex, expensive) regulations. As a result, some businesses would do anything (including referring potential customers to rival businesses) to keep the workforce at 49. These businessmen jokingly referred to themselves as 'forty-niners'.

Well, the French term translates almost perfectly to 'forty-niners'.:)

Tom