Crutzen (2008) distinguished a small business as having
the “power” or ownership in the hands of one person, with
many of the business’s activities being based on the personality
and business acumen of this individual. In this view,
the business’s managerial structure is relatively simple and
informal, and the owner or CEO has sole responsibility for
managing all operational aspects.
Similar to Peterson, Albaum, and Kozmetsky’s (1986)
consumers, the U.S. Small Business Administration (SBA)
bases its definition of a small business on the number of
employees and sales levels. Those limits for most non-manufacturing
businesses are no more than 500 and sales of $7
million (Summary of size standards by industry, n.d.).