Small business
A business independently operated and limited in size or revenue under standards set by a government, lender, or industry.
Small and medium-sized enterprises: Businesses classified by size, usually using employee counts, revenue, or assets. This broader category includes small businesses and, in many systems, medium-sized firms.
Cash flow: The movement of money into and out of a business over time. Timing gaps between customer payments and expenses can threaten a small firm even when it is profitable.
Entrepreneurship: The process of creating and developing ventures to pursue opportunities under uncertainty. Starting a small business is a common route for turning an entrepreneurial opportunity into a venture.
Startup company: A young company designed to develop a repeatable, scalable business model. A startup may be small by headcount, but its defining aim is rapid, scalable growth.
Sole proprietorship: An unincorporated business owned and operated by one person. Many small businesses use this simple structure, though the owner and business are legally inseparable.
Working capital: Current assets minus current liabilities, indicating resources available for near-term operations. Small businesses rely on working capital to cover inventory, payroll, and other immediate costs.
Franchising: A business arrangement in which a franchisee operates using a franchisor’s brand and system. Franchises give some small-business owners a tested model while imposing fees and operating rules.
Large business: A business operating at a scale that exceeds applicable small-business size thresholds. Large firms differ in scale, resources, and often regulatory classification from small businesses.
Partnership: A business owned by two or more people who share profits and responsibilities. Partnerships let small firms pool skills and capital without forming a corporation.
Small business loan: A loan intended to finance a small business’s operations, assets, or growth. Borrowing can fund expansion when the business lacks enough cash or retained earnings.