We hear the term small business a lot these days, and October is small business month here in Australia, but the question is are you running a small business or are you running a micro business?

The Australian Bureau of Statistics says you are only classified as a small business if you employ between 5 and 19 people. If you employ 20 plus people you just entered the medium category and if there are four or less of you then you just became a micro business.

The problem is that this is only one way that your company’s status as a small business can be measured. The Australian Tax Office has a completely different system in place that is based on revenue. If you bring in less than $2,000,000 a year in revenue, they call you a micro business. If your revenue figures are between $2,000,000 and $10,000,000 then you get to call yourself a small business.

As you can see it can get a little confusing and these two organisations are not the only ones to define this category of business differently. If you spend a little time online, you will find many more ways to define the size of your business both from Australian and from international sources.

So, the question is why has no one come up with a universal definition of a small business? I think the answer is that there really is no such thing as a small business or a micro business. To the people involved in the running of a business it is never small, it is their world. To the loyal customers of a business, the way its size is classified is not something they tend to consider. If you have happy customers and a passion for what you do, then putting a label on your business size is the last thing you should be doing. If we think small, we stay small so remember that your business is as big as you think it is.

Do you want help realising the full potential of your business? Contact The Consultants’ Community today.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *