How to identify a small business

When organizing their own enterprise, future managers do not know by what criteria it is possible to determine a small enterprise, which has a number of advantages compared to medium and large.

You will need

• -data on the company's revenue for the calendar year;

• -information about the number of employees.

Instruction manual

1

As the law says, small enterprises are commercial organizations in whose capital the share of religious and charitable organizations, public organizations and other bodies of the Russian Federation does not exceed twenty-five percent, the share that belongs to a person who is not a small business also does not exceed twenty five percent.

2

To determine if a company is small, read the data on the company's revenue from sales of goods and services for the previous calendar year: for small enterprises, this figure should not exceed 400 million rubles.

3

Also find out the number of employees in the enterprise. The condition for the maximum number of workers when classifying an enterprise to one or another class depends on its field of activity.

4

So, if the scope of your business is small business, your company must satisfy the following conditions (the number of employees is considered the average for a calendar year): - if the company belongs to the transport, industrial or construction industries, then its staff should not exceed one hundred people; - if the enterprise belongs to the scientific, technical or agricultural sphere - no more than sixty people can work at it; - if the enterprise belongs to the wholesale trade - the number of employees should not be more than fifty people; - if the scope of the company includes retail and consumer services population - no more than thirty people should work for it; - if the company specializes in other industries and carries out other activities - the staff should not exceed fifty people.

5

Also, if possible, find out the share of the working capital of the enterprise in relation to its fixed assets. For small enterprises, this ratio is significantly higher than for large: usually it is about 20:80 for small versus 80:20 for large.

6

Also find out if the enterprise is inherited by the owner’s relatives. If yes, most likely this is a small business, as in the case of medium and large enterprises this happens very rarely.

note

Small enterprises are not a legal form, not a kind, like joint ventures, leases, etc., but a size. The concept of a small enterprise can be attributed to any type of enterprise, for example, a small private or small state-owned enterprise.

Useful advice

If the enterprise is diversified, that is, it carries out several types of activities. Find out the sphere that brings the highest annual income, and it determines the size of the enterprise.