A Small businesses are defined varies according to the viewpoint of each person that defines, anyone seen from venture capital, sales and even the amount of labor. But basically the principle is the same.
A small company are the following small business is the people's economic activities that are small-scale, and meet the net worth or annual sales results as well as ownership as set forth in Act.
The defines a small business are as follows:
The development of four main economic activities (core business) that become its driving force of development, namely agribusiness, manufacturing, human resources (HR), and marine businesses.
The development of the region's flagship, to be able to speed up the recovery of the economy through the region or County approach, i.e. by selecting the area or areas to accomodate the program priorities and the development of sectors and potential.
Increased community empowerment efforts.
While the Financial Accounting Standard Board (FASB) in Ahmed Riahi Balkaoui, defines a small company as follows: a small company whose operations are relatively small, usually with a total income of less than $5 million. The company generally (a). managed by the owners themselves, (b) has a couple of other owners, if any, (c) all owners are actively involved in running the Affairs of the company except perhaps a certain family members, (d) transfer of ownership rights are rare, and (e) have a simple capital structure.
Defines a small business are as follows: small businesses are the economic activities of the people who have the most net worth Dollar 200 million,-not including land and building or place of business have the results of the annual sales at most Dollar 1 billion.
The notion of a small business is the economic activity of the people who meet the criteria as:
- The businesses that have the most net worth Dollar 200 million dollars, not including land and building businesses.
- Businesses that have annual sales of most Dollar 1 billion (Dollar).
- A businesses that stand on their own, not the company or subsidiaries that are owned, controlled, or affiliated, either directly or indirectly with a medium or large scale business.
Shaped business entity owned by an individual, business entity which is not a legal body, including the cooperative.
From the above definition of a small business can be concluded that in small businesses there are two things to note are:
- Concentration of ownership and control in the hands of someone or some people,
- The limited separation within the company.
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