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A small business is a business that is run using a minimum number of employees and the amount of production is also less. Generally small businesses are owned by private sectors. Medical shops, lawyers, doctors, convenience stores, tradesman, photographer, textiles, manufacturing companies on small scale, etc are some of the examples of small business. Number of factors like total number of employees, net profit, annual turnover, etc determines whether it is a big or small business. The government regulations for small scale industries are not that severe. They check whether the company meets the basic requirements needed for starting a business. Moreover, these regulations can vary from a country to county.

Nowadays, many banks and trade unions are offering loans to start and or develop a business. These loans include business loans, small business loans, unsecured personal loans, etc. The loan varies according the size and scope of the company. Personal loans do not require any security and comes in handy when the owner is in need of cash. Though small business provides various benefits like easy maintenance, minimum capital, etc there also some problems related with it. Bankruptcy and under capitalization are some of the problems that occur frequently in the small business. For commencing big business entity, buying shelf corporations or aged corporations with effective corporate credit is the best idea.

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