Better Business, 5/e

Chapter 5 Summary

1. 5-1 Describe the role and structure of small ­business within the U.S. economy.

• A small business is a business that is independently owned and operated, is not dominant in its field, and has fewer than 500 employees. To qualify for government programs from the U.S. Small Business Administration (SBA), revenue restrictions are also put in place and vary by industry. Many small businesses are limited to $7 million in annual revenues.

• Small businesses are important to the economy for several reasons. They account for more than one-half of America’s economic output, help foster innovation, supply larger companies with products and services that larger companies do not or cannot supply themselves, supply products and services ...