As per Lawkidunya, A Small Business Start-up, as per law, refers to a newly formed business that meets specific criteria and is entitled to certain benefits and protections under the law. Here are some key aspects of a Small Business Start-up as per law:
United States
1. Definition: The Small Business Administration (SBA) defines a small business as one that is independently owned and operated, has fewer than 500 employees, and has average annual receipts of $7.5 million or less.
2. Start-up Phase: The SBA considers a business to be in its start-up phase if it is less than 2 years old.
3. Benefits: Small Business Start-ups may be eligible for SBA loan programs, tax benefits, and other resources.
European Union
1. Definition: The EU defines a small business as one that has fewer than 50 employees and has an annual turnover of €10 million or less.
2. Start-up Phase: The EU considers a business to be in its start-up phase if it is less than 3 years old.
3. Benefits: Small Business Start-ups may be eligible for EU funding programs, tax benefits, and other resources.
India
1. Definition: The Indian government defines a small business as one that has an annual turnover of ₹5 crore or less and is engaged in the manufacture or production of goods.
2. Start-up Phase: The Indian government considers a business to be in its start-up phase if it is less than 7 years old.
3. Benefits: Small Business Start-ups may be eligible for government subsidies, tax benefits, and other resources.
Key Characteristics of Small Business Start-up
1. Newly Formed: Small Business Start-ups are newly formed businesses, typically less than 2-3 years old.
2. Limited Size: Small Business Start-ups have limited size, typically fewer than 50 employees and limited annual turnover.
3. Innovative: Small Business Start-ups often focus on innovative products, services, or business models.
4. High Growth Potential: Small Business Start-ups often have high growth potential, aiming to scale quickly and expand their market share.