Small business drives growth in the economy and fuels innovation. They build personal connections with their customers and leave a mark wherever they thrive. But getting there takes resilience. Throughout the year, we have seen many small businesses persevere against challenges like the Covid-19 pandemic and funding issues, and we want to celebrate their grit. In this article, we feature some of the most compelling small business stories that show how overcoming obstacles is a crucial element in growing and scaling a successful company.
Small businesses can be structured as a sole proprietorship, partnership, or corporation. Registering as a small business opens up opportunities for funding, government programs, and tax benefits. Choosing the right structure depends on the type of business you have, as well as its legal requirements. For example, a sole proprietorship is easy to start but may not provide you with the same protections as a corporation or limited liability partnership.
The definition of small business varies across industries and regions. In the United States, the U.S. Small Business Administration uses size standards based on firm revenue and number of employees to determine whether companies are eligible for federal contracts and other financial assistance. This definition of small business is also used to categorize firms when filing certain federal taxes.
Often, it can be hard for small businesses to access financing because of their risk profile. To ease this, the Small Business Investment Company Act allows small businesses to obtain government-backed loans from private equity funds. These loans are less risky for lenders because they are guaranteed by the Small Business Administration. You can find out if your business is eligible for a Small Business Investment Company (SBIC) loan by using our Lender Match tool.