SMALL BUSINESS NEWS | SMALL
BUSINESS FINANCING
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A small business may be defined as a
business with a small number of employees. .
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The legal definition of "small" often varies by
country and industry, but is generally under 100 employees in the United States
while under 50 employees in the European Union (In contrast, the American
definition of mid-sized business by the number of employees is generally under
500 while 250 is for that of European Union). These businesses are normally
privately owned corporations, partnerships, or sole proprietorships.
Small businesses use several sources available for start-up capital:
Self-financing by the owner through an equity loan on his or her home or
other assets.
Loans from friends or relatives
Private stock issue
Forming partnerships
Venture capital, given sufficiently sound business venture plans
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