SMALL BUSINESS DEFINITION

   Generally, a business or an Enterprise or a firm is an organization designed to produce or provide goods and services or both to consumers. Business are more prevalant in capitalist or mixed economies than in centrally planned economies. In mixed economics like Nigeria, businesses may be privately pioneered, formed and owned to earn profit in order to increase their wealth. Government may also promote business for social and developmental or strategic reasons. our focus is on small business which we shall attempt to define.
   Small business, is a commercial undertaking that is relatively small in terms of sizes, numbers of workers employed, capital requirements, number of clients serviced or covered and the sales or profit turnover. 
The more generally acceptable definition are those advanced by government institutions and agencies which are:
* The national council on industry (2001) defined and classified small, micro and medium enterprises (SMES) and large enterprises as :
a)  Micro/cottage industry; as industries with total capital employed of not more than 1.5 million including working capital but excluding cost of land and/ or labour size of less than 10 workers.
b) small scale industry; as industry with a total capital employed of over 1.5 million including working capital but excluding cost of land and labour force of 11-100 workers.
c) medium scale industry; as industry with total capital employed of over 150 million but not more than 200million including working capital but excluding land and labour of 101-300 workers.
d) large scale enterprise; as industry with a total capital employed of over 200million, including working capital but excluding cost of land and labour size of over 300 workers.
   The above institutional definitions could become invalid after certain period of time over other factors such as:
* Price inflation which couíld render the above financial criteria unreliable.
* Changing production and other technologies which could reduce the size of labour depending on the production technology unsed in or by a given industry.
* Legal requirements for employment of labour and minimum wages that vary among countries depending on the state of economic development of a Nation.
* National employment policy of the government change frequently.
 

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