small business management

I.                  Introduction

What is a small business?

A small business is a privately owned and operated business. A small business typically has a small number of employees. In the United States, the legal definition of a small business is determined by the U.S. Small Business Administration (SBA), which sets the criteria to be used by the SBA in making small business determinations. Criteria by the SBA in determining the definition of a small business includes the number of workers employed or annual receipts. The following criteria is used by the SBA to define a small business:

• Manufacturing: Maximum number of employees may range from 500 to 1500
• Wholesaling: Maximum number of employees may range from 100 to 500
• Services: Annual receipts may not exceed $2.5 to $21.5 million
• Retailing: Annual receipts may not exceed $5.0 to $21.0 million
• General and Heavy Construction: Annual receipts may not exceed $13.5 to $17 million
• Special Trade Construction: Annual receipts may not exceed $7 million
• Agriculture: Annual receipts may not exceed $0.5 to $9.0 million

The definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. A local bakery that employs 10 people is an example of a small business. A manufacturing facility that employees less than 500 people is an example of a small business.

II.               Management

What is management?

Management plays a vital role in any business or organized activity. Management is composed of team of managers who have charge of the organization at all levels. Their duties include making sure company objectives are met and seeing that business operates efficiently. Regardless of the specific job, most managers perform four basic functions: 

o   Planning

o   Organizing

o   Directing

o   Controlling

Planning involves determining overall company objective and deciding how these goals can best be achieve