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Small businesses dot the American landscape and have stimulated the economy for the past two centuries. The definitions for small businesses have changed consistently over the course of the last five decades. While some businesses are considered small if they have fewer than 500 employees, other businesses seem to get lost in the process simply because they fall into a microenterprise category including the Mom and Pop companies, family owned companies, and those individuals that are considered self-employed. The Small Business Administration (SBA) has been the authority on defining what is or is not a small business. With this in mind, this study used a mixed methodology to explore the definitions of small businesses and microenterprises by surveying 388 MBAs and CPAs in the United States with the goal of creating a better understanding of what constitutes a small business and a microenterprise. When all was said and done, the definitions of small businesses and microenterprise still remain a mystery, however a broader understanding of the difficulties associated with defining the two is brought to the forefront.
INTRODUCTION
There are over seven million businesses in the United States that could be considered either a small business or microenterprise (ada.gov). Depending on the definition of a small business or microenterprise, some of these entities have access to resources based on size and industry. However, there is confusion on what actually differentiates a small business from a microenterprise.
Research Defining Small Business
Small business enterprises dot the American landscape and stimulate the economy from East to West and North to South. As of 2013, there are over "3.7 million "Micro businesses in the United States, accounting for 75.3% of the private sector" (Headd, 2015, p. 1). " Over 28 million small businesses created half of the U.S. workforce in 2012" (Nelson, 2015; p. 3). An average of 60% of all new jobs can be attributed to small businesses, including existing companies and start-ups. "Small businesses with fewer than 100 employees have the largest share of small business employment" (Nelson, 2015, p.1). These companies are owned by men, women, minorities, and veterans and are crucial to the economic stability of the United States. Sizes vary with approximately 6 million being businesses with less than 500 employees, 5...