Business - entrepreneurial activity in different organizational and legal forms. Under the terms of management, small, medium and large businesses are distinguished. The main criteria that determine the type of business:
the number of employees;
income;
share of participation of third parties in the capital.
Small business
Small business is the most massive type of business, but with a small share in the market. Small business covers certain types of production, scientific, technical and agricultural enterprises, construction, the sphere of consumer services and trade. When lending, representatives of small businesses receive benefits within the framework of specific banking products. Small businesses have no liquid capital investment assets, making it difficult to sell them without losing value.
Small business allows:
weaken the monopolies of large corporations;
promptly fill the market with goods and services;
create jobs quickly;
develop healthy competition;
fill local budgets.
Medium business
Medium business is the engine of the economy and a link between large and small businesses. Representatives of medium-sized businesses include:
construction organizations;
trading companies;
private medical centers;
manufacturers of consumer goods;
representatives of the IT sphere
Big business
Companies operating in international markets, locating production and partner networks in different countries. Large business representatives:
have a significant share in the national production base;
are characterized by high capitalization of fixed assets;
have a large staff;
export goods or services;
improve the investment climate in the country;
develop new technologies;
are large taxpayers.
More here - https://www.worldbank.org/en/topic/smefinance
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