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Small and Micro Businesses

Small- and micro- (sized) businesses (SmB’s) are those businesses meeting a flexible definition of small to micro sized businesses. The acronym “SmB” is used to referring to Small- and Micro- (sized) Businesses. The usage of this acronym is to provide a more conventional and modernized term, yet it is not to replace existing terms, i.e., Mom and Pop Businesses, Small Firms, Small Business, Entrepreneurship Businesses. This reference is not to infer these terms are outdated, but it is to provide an easier reference method to encompass this level of businesses.

Micro businesses are the smallest type of small business. Yet, Small and Micro Businesses (SmB) are normally group together in discussions and in texts. These businesses are normally owned and operated by a single ownership entity or other family members, but they may have other outside stakeholders. The businesses major features reflect a small scale homelike appeal, a more familiar customer atmosphere, or a distinct friendliness of customer needs from a business perspective. This provides a physiology component compared to other business models and structures.

For example, the Woody’s Chicago Style Hot Dogs franchise operation is operated using minimal staffing (small scale operation). The ownership develops an understanding of its returning customers (friendliness of customer needs). The ownership converses with all customers. This allows the ownership to be approachable and accessible to its entire clientele. The ownership develops and understands the service patterns and needs of its consumers (familiar customer atmosphere). This allows the ownership to interact with the customer on a personal level.

This acronym should not to be confused with the term “SMB”, which references Small- and Medium – (sized) Businesses. Small and medium enterprises (also SME's, small and medium businesses, SMB's, and variations thereof) are companies whose headcount or turnover falls below certain limits.

History

From the Legal online Dictionary, some Small and Micro Businesses can meet the legal definition for Mom and Pop Businesses, which is:
“A type of enterprise that is independently owned and operated, has few employees, does a small amount of business, and is not predominant in its area of operation.”

Acronym History

This term has been coined from and referenced in an unpublished participatory action research (PAR) study by a Doctoral Candidate in Management, concerning the study and research of a small- and mirco- business (SmB) within an operational setting. The study was performed by Jeffrey L. Newcom, MBA, PM. The published version of this work will be in Fall 2009.

SmB’s Acronym and its usage

Seemingly, the term refers to those SmB’s businesses which meet specific limitations of earnings and number of employees. However, these limitations vary from country to country.

The SmB's acronym is not intended to change or to replace any existing or established definitions. It was created to simplify identifying SmB in a written text format. The SmB definition mirrors the already establishing definitions for Small and Micro Businesses (SmB’s). Apparently, the definition for Mirco- (sized) Businesses varies based on the problematical definition as it is being used, how it is being used, or how the business is being referenced. Thus, this has prevented the Micro (sized) businesses to establish a clear and specific definition.
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Quoted from the California.gov webpage, a micro- business is defined by:

"In 2001, AB 1084 established the definition of a microbusiness as a subset category of a small business. It's the state's intent that microbusinesses are afforded the same entitlements and business participation benefits as a small business.

A microbusiness is:

   * A small business that, together with affiliates, has an average annual gross receipts of two million seven hundred fifty thousand dollars ($2,750,000) or less over the previous three years, or
* Is a small business manufacturer with 25 or fewer employees.

Authority Government Code, Section 14837"

References

Newcom, Jeffrey L.. (2009). “Participatory action research (PAR): Woody’s hot dog research study.” Unpublished study, Institution of Advanced Studies at Colorado Springs, Colorado.

California.gov webpage

Company
Mom and Pop Businesses
•Participatory Action Research (PAR)
Small and Medium Businesses (SMB)
Small and medium enterprises (SMB)
Turnover
Woody’s Chicago Style Hot Dog franchise

Institution of Advanced Studies at Colorado Springs, Colorado
Legal Online Dictionary