What is considered a “small business” varies from country to country, and industry to industry. In the United States, a small business is defined as any corporation that employs less than 10 employees, is privately run by one individual or a group of individuals, and nets a modest profit, if any.
Typically, small businesses are independently owned. They are your mom-and-pop corner stores, solo attorneys, small law firms, real estate companies, and multi virtual assistant firms. In many instances, the small business requires a modest amount of start-up funds, and offers a greater degree of intimacy with customers.
As with any corporation, the small business comes with its own set of challenges, and small business owners encounter their own share of hurdles. Compared to its larger counterparts, the small business is often more susceptible to the challenges they face.
A small business, when faced with difficult financial times, is more prone to seek bankruptcy relief as a result of under-capitalization, and the fear that business debts could become personal liabilities.