Maketers want to know the answer to this question because they have in mind, an ideal audience for their particular product and service — and they want that to be the definition of a small business. Marketers tell me, “We’re targeting companies with less than ten employees” or “Our target customers have 50 or more employees” or “We find that companies with $3-5 million in revenues are our best target market” or “The independent contractor is our customer.”

Of course, all of these groups are small businesses. It’s a bit like trying to lump all consumers under one big category called “consumers.”

Frustrated, marketers try to come up with different terms that divide small businesses into clusters — and, frankly, marketers would love it if small businesses started thinking of themselves voluntarily as such terms as: Solo-preneurs, Small and Home Office (SOHO), Mid-size business (bigger than small, but not big).

But, to the frustration of marketers (and the surprise of no one) small business owners don’t want to keep up with all of those terms, they’ll just continue using the label “small business” to describe everything that’s not big: from a self-employed individual to a company with 500 or more employees (especially if they are not publicly traded and are still primarily owned by one family or a small group of investors).

The technical definition of “small business” is probably not that helpful to marketers, but it is vital to one group of small businesses: those who provide services or products to the government; and those who are seeking financing backed with SBA guarantees.

Because nearly all government contracts include provisions that insure a percentage of the contract is awarded to small businesses (sometimes called “set-asides”), the technical definition of what a small business is is very important — and highly technical. Indeed, the stakes are so high with small business “set-asides,” there are continuous examples of large companies trying to bend the definition — or worse, to circumvent the regulations — to secure such government contracts.

The Small Business Administration is designated by law to define what is, and is not, a small business.

As you can imagine, this is not an easy task. It is so difficult that no one definition works. Nearly every industry has some nuance that makes it unique when separating the difference in “big” and “small” businesses in such a context.

So, therefore, the SBA maintains a “size standard table” that classifies the “technical requirements” of a company in each category of the North American Industry Classification System (NAICS). This table is the closest thing there is to an answer for what is, according to the U.S. government, a small business.

On SmallBusiness.com, to learn more about “why size matters,” visit the following entries:

•What is a small business?

•Table of small business size standards matched to North American Industry Classification System Codes

As I’ve been one of those “geeks” who just wrapped up my sixth SXSWi, I’ll admit that such a label is well deserved. Over the years, the conference (the Interactive part of the festival is more conference, trade-show and party than “festival”) has grown from a small gathering of developers and designers of technology, into a giant “meetup” of users of technology who desire to connect with one-another and with those who develop the tools and toys they use to connect, work and play.

One of the highlights for me this year was to visit with several developers of small business oriented web applications. I was especially impressed with the way in which many of them, even those who compete with one-another, used SXSWi as a place to let people know how they’re working together to add a variety of ways their different software products can share information to make it easier for small business users to integrate numerous applications into the ways they organize, run and market their companies.

Many of these web application companies have joined together in “a loose coalition” called “The Small Business Web.” Despite their competitive spirit, they’ve chosen to have a big “group hug” when it comes to making their products easy to work with one-another when used by small businesses. (They were even handing out “Hug” buttons at a party in Austin).

And to underscore the evolution of the “integration” of these applications, right before SXSWi began, Google announced that many of them are available as part of their new Google Apps Marketplace, an approach that allows small businesses that use the premium service Google Apps the ability to purchase third-party web applications and integrate them into the Google Apps platform.

I enjoyed meeting several of the people who started and run these web application companies and was happy to inform them that SmallBusiness.com users have created many entries about their services. (Check out The Small Business Web Hub.)

Because of their low-cost and productivity-enhancing nature, I’m sure web applications are something small business owners are going to be learning more and more about in the coming months and years — and using them more and more, as well.

See also on SmallBusiness.com

•The Small Business Web Hub
•Web Applications Hub
•Google Apps
•Google Apps Marketplace

According to the study, sixty percent of individuals engaged in entrepreneurship training acquire it from informal sources, which GEM defines as non credit-bearing courses at a university, local business organizations, or government agencies, or self-study using books and internet courses. “Access to informal programs is a good thing too, because entrepreneurs can obtain the specific skill sets they need to achieve their immediate goals,” says Alicia Coduras, from IE Business School in Spain and lead author of the report.

Key Findings of the Report:

•Across 38 countries, where training in starting a business was measured, only 21% of the adult population had received training.

•Training appears to have the greatest effect on early-stage entrepreneurial activity in wealthier, innovation-driven countries with favorable institutional frameworks.

•The highest levels of training were found in Finland and Chile, countries with government initiatives aimed at stimulating and preparing individuals to start businesses.

•Men are more likely than women to seek training.

•Younger individuals are more likely to have received training in starting a business, reflecting a recent rise in entrepreneurship education in many countries’ formal educational systems. 



In the U.S., we have many sources for both formal and informal training in entrepreneurship. As I mentioned recently, nearby colleges and universities are one place to look.

On SmallBusiness.com, you can find information about entrepreneurship educational and training resources in many ways:

SmallBusiness.com Local Hub: Click on your State Hub, then your City Hub and look for SCORE Chapters, Small Business Development Centers, Women Business Development Centers and University Entrepreneurship Programs.

Or, go straight to any of the following SmallBusiness.com Hubs :

•University Entrepreneurship Programs Hub

•SCORE Chapters Hub

•SBDC Offices Hub

•Women’s Business Development Centers Hub

This has been a challenging time to be in a job. The industry doesn’t really matter, although the industries that I’m close to—housing, multi-family, media, marketing and publishing—have experienced challenges on an order of magnitude that none of us could ever imagine. But for everyone, the work of going to work, doing what you’re asked to do, managing people and dealing with customers is fraught with an undercurrent of anxiety and uncertainty.

This is at the core of the national mood. A quick look at Gallup’s Economic Averages shows that the suppressed mood of Americans is barely changed from a year ago, despite a perception that the outlook for the job market is somewhat better.

Our day-to-day work life lacks the public and external validation, such as raises, promotions and bonuses, that helped boost our sense of self and well-being. I was reminded of this over the past week as we went through budget reviews at my company, NCI. Our teams have been incredible over the past two years, making balanced decisions about people, products and resources even while the business conditions have deteriorated around them. We’ve preserved our company, have improved our operating abilities and have innovated in exciting and promising ways. As we went through the presentations, I was struck by just how much has been done to define exactly what the benefit of each of our different services is, and to clear away any statement, activity or process that is not critical to delivering that benefit.

I was also struck by how little external reward there is in the current business climate. I can only recognize people and thank them.

But does that recognition have the same value as the more tangible rewards that were readily available in the past?

Maybe it does, if I’m able to be honest and authentic, and if my engagement with others is genuine.

In a reflective blog post this week, the writer Scott Berkun exemplifies the power of candor.

In a list of his greatest professional mistakes, Berkun shuns cataloging business failures to take stock of how aspects of his nature have kept him from realizing opportunities for growth.

Not learning to draw. I’m a visual thinker, at least some of the time. When I work with people on anything, I work at whiteboards and on big sheets of paper. But I can’t actually draw with sufficient aesthetics to warrant posting them here, or including them in books. This is a liability. But it’s one I plan to correct this year, as one of my goals for 2010 is to learn to draw. I’m working from Drawing on the Right side of the brain, and it’s going well so far.

The kind of self-awareness and honesty that Berkun promotes in this post is of great value today. In order to achieve a sense of balance, calm and productivity, each one of us can benefit from acceptance of ourselves and our circumstances. In that acceptance we’ll find tremendous opportunity.

I’ve had this conversation with a number of my colleagues over the past couple of years. At the center of rapid change, it is easy to lose your bearings.

As a manager, keeping those bearings is important to helping the people around you. I was reminded of this as I read an article from The Gallup Organization that looked at how to bolster employee confidence during these lean times.

The secret is to take a genuine interest in their future, to help them learn new skills and gain new experiences.

“This last year, I have had opportunities at work to learn and grow.” Employees’ optimism about their standard of living also rises steadily with their level of agreement that they have opportunities at work to learn and grow. In fact, employees who strongly agreed in early 2009 that they have such opportunities were significantly more likely to feel their standard of living was getting better (50%) than to feel it was getting worse (33%).

The feeling of making progress against the long-term goal of their professional life creates a sense of mastery and confidence that diminishes the short-term discouragements of an adverse business cycle, the Gallup researchers say.

Two important touch points for a challenging time: Accept who you are and take a genuine interest in the people around you. These are enduring truths that are too easy to lose sight of when times are tough. But, these truths are about accepting the human spirit, being humbled by our lives and shedding the illusion that we can control the fates.

So I know small business owners have the ability to ask for help.

But during bad times — when the mode is survival rather than growth — small business owners often hunker down rather than reach out.

Perhaps there’s some misguided belief that reaching out in a challenging time is an admission of failure. Or perhaps there’s a belief that if you’re “the boss,” then you have to be the leader and, somehow, have some innate ability to guide the ship through troubled storms.

Someone reading this is filled with anxiety about whether or not that big client is going to switch to another vedor, or if the bank is going to refuse to renew the line of credit or if a great salesman is about to jump ship.

I wish there were easy answers to calm these anxieties. All I know is this: even the small business owners you think are always successful have plenty of horror stories they’d like to forget.

And while they may not be able to help solve that crisis you’re going through right now, there’s something reassuring about hearing that you’re not the first or only one to experience the anxiety you’re feeling now.

Go ahead and call a small business friend. Talk it over. You’ll be amazed at how much good it will do you. And who knows, if may even help you get some sleep.

American colleges and universities are also homes to nearly 1,000 Small Business Development Centers (almost 850 are featured on the SmallBusiness.com SBDC Hub).

In addition to offering academic programs to students, these colleges have recognized the importance of serving the needs of innovative, entrepreneurial and growing businesses in their area. Such companies are the economic backbones of the regions these colleges serve — and they are the creators of jobs their alumni will need upon graduation — at least, the graduates who don’t start their own companies immediately. Helping these companies succeed is important to these colleges’ success, as well.

While most of these programs have been created during the past 25 years, they have already produced a generation of young people with the passion — and skills — to create and grow companies.

As part of their training, many of these students must shadow or serve “intrapreneurships” at area businesses — a great way for companies to support the entrepreneurship programs, while getting the chance to work with some talented, innovative and passionate young men and women.

Additionally, these programs often offer seminars, speakers and programs for business owners in the region that provide great opportunities for you to hear new ideas, opportunities and solutions — along with networking with other entrepreneurs — and future entrepreneurs.

SBDCs at these schools can also provide assistance and consulting — most at little or no cost — related to specific business needs, like helping prepare you for applying for an SBA loan — or even help in setting up a new business.

To see if there are university entrepreneurship programs or Small Business Development Centers in your area, visit the SmallBusiness.com Local Hub and click on the “Cities in … ” link.

See also on SmallBusiness.com
•University Entrepreneurship Hub
•SBDC Offices Hub
•Local Hub

In the years I’ve attended, it has grown from a small conference that was held in a small corner of that city’s convention center to a sprawling mega-convention that spreads out over the entire convention center and hotels around the center. There’s also a film festival taking place at the same time — and, the real main act, the music festival gets cranked up immediately after the Interactive festival ends. In other words, for a few days in Austin, there’s a mass gathering of lots of very creative, entrepreneurial, tech-savvy, pop-cultural aware men and women who gather to create offline community with those they’ve met on sites like, well, SmallBusiness.com.

For most users of SmallBusiness.com — nearly all, to be accurate — the site is a reference source, a great place to find a definition, or, more likely, some knowledge and links to other websites related to a topic on which they need to make a decision.

However, there are a few folks who use this site who have reached out to me, assisted me, complained to me, asked me questions, made brilliant recommendations, or who have inspired me in some way — and most importantly, clicked on that “Edit” button at the top of every page to add or fix something.

Many of those people attend conferences like South by Southwest and lots of other off-line gatherings throughout the year. So I’ve decided that during the next 12 months, I am going to attempt to attend several of these events in order to meet with as many people as possible who would like to do the following:

1. Talk about anything related to small business.
2. Ask me about this site — especially the parts that are confusing to use. (There are many – but so is Wikipedia.)
3. As me how to use the site to help you raise the visibility of your small business, your blog, your website, book, small business service, etc.
4. If you’re in public relations, marketing or other promotional business, for me to explain the appropriate way to promote your clients on SmallBusiness.com.
5. To let me do a short video of you explaining how-to do something.
6. For me to give you a five minute tutorial on some aspect of using SmallBusiness.com that is related to the quirkiness of editing any MediaWiki-platform wiki — say, Wikipedia — that you’ve never quite understood.
7. To talk about wikis.
8. To hang out.

For those of you who will be attending SXSW — or who live in Austin and would like to get together outside the SXSW bubble — I’ve set up a special entry on SmallBusiness.com that can be used for several purposes, one of which I hope is for you to talk with me.

Thanks. And soon, I’ll let you know where the next stop on the SmallBusiness.com mystery tour will be.

*I’m Rex Hammock, creator of and head-helper at SmallBusiness.com. You can learn more about me on my SmallBusiness.com user profile, or on my ten-year old blog called RexBlog.com or on Twitter, where I’m @r and @smallbusiness. Or just e-mail me: Rex@SmallBusiness.com.

Most of the coverage leading up to the gathering has been focused on the political intrigue of the summit: “High stakes gambit” is how the LA Times led its preview of the meeting.

After 20 years of political posturing by both Republicans and Democrats, it is time for lawmakers and the president to find common sense and common ground solutions — and do it now.

As the nation’s primary jobs-creator, small businesses must be a part of the solution to the health-care crisis — which is not really a crisis in health care, but a crisis in health-care affordability. Because the marketing of health-care insurance in the U.S. is based on a model where employers are a part of the insurance distribution channel, part one of any solution must address the ability of small businesses to access affordable coverage.

As a small business owner myself, I can tell you, at some point in the life a small business, decisions start getting made about growth and operations that factor in health-care insurance costs rather than business strategy and opportunity. I can also tell you that “jobs growth” is directly tied to the affordability of health-care insurance.

So, my advice to lawmakers of both parties is this: Fix it. And if you can’t fix it, stop using the issue to gain media coverage or raise PAC contributions.

If either side of this debate believes they can continue scoring political points with their base (including lawmakers who believe small business owners are their base) by “theatrics” rather than actions, they are wrong.

Making access to health-care insurance is critical to small business owners. It is more important than protecting the interests of any one type of insurance company that is headquartered in a lawmaker’s district or state. It is more important than protecting the interests of state-based trade groups that benefit from having health-care coverage requirements mandated at the state level. It is more important than campaign contributions from labor groups or insurance and drug companies. It is more important than having any one type of treatment included in all insurance plans. It is more important than buzzwords and gambits.

It is time for lawmakers to stop listening to “small business lobbyists” and “labor union lobbyists” and “insurance company lobbyists” and “drug company lobbyists” and “political strategists” and on and on.

Just fix it.

And if you can’t fix it all, then fix the parts that can be agreed upon easily.

And if you can’t fix those, then please, consider retirement.

See also on SmallBusiness.com

•Healthcare reform

As I think small business should be celebrated every week — indeed, every day, I’m happy to note that it’s National Entrepreneurship Week, according to the Consortium of Entrepreneurship Education.

Entrepreneurship — and entrepreneurship education. Can’t think of anything better to celebrate on this blog and on SmallBusiness.com

See also on SmallBusiness.com
•Consortium for Entrepreneurship Education
•National Entrepreneurship Week

Well, for one thing, labor statistics related to the self-employed (or non-employer businesses, in government lingo) are excluded. So while “jobs” are being lost, “gigs” by the self-employed are being found — but are unreported.

Writes Elance:

“Consider this piece of data from the Labor Department’s recent report: the number of self-employed Americans grew by 126,000 in the last quarter. Add to that another telling statistic: the number of temporary jobs has increased by 250,000 in the last quarter….Our so-called jobless recovery is nothing more than an illusion. What we are experiencing is a long-predicted structural change in the job market. In the span of a single generation, we’ve gone from “company man” to being our own man or woman, thanks, in part by, to advances in computer and telecommunications technology.

Elance is in a perfect position to observe this phenomenon: they are helping to make the metaphorical “labor market” into an actual market, where those who have a project can find self-employed individuals who can carry it out. According to the Elance Online Talent Report, “more than 100,000 businesses listed 300,000 new jobs last year (on such job matching services as Elance). Last month alone, the number of jobs posted grew by 30 percent from the previous month.”

This may end up being a jobless recovery — because of a “gig” explosion. Advances in telecommunications and technology are not just changing every industry they touch — they are changing the very nature of labor and work.

See also on SmallBusiness.com

•Department of Labor
•Bureau of Labor Statistics