What is the definition of a small business?

The definition of a small business primarily focuses on size and employee count, making the choice that identifies an organization with less than 20 employees the most accurate. Small businesses are often characterized by their limited scale in operations, which typically includes a smaller workforce, lower revenue, and less market reach compared to larger firms.

This threshold of employee count helps distinguish small businesses from larger enterprises. Definitions can vary by jurisdiction and might include other criteria like annual revenue; however, employee count remains a fundamental aspect. The choice that refers to a company operating online, a business with a franchise model, or a corporation with multiple stakeholders does not capture the essence of what constitutes a small business in terms of size and workforce.