Small Business

Small businesses are the backbone of the American economy. Learn the essentials of starting, growing, and managing a small business in this guide.

Frequently Asked Questions
  • What Is the Small Business Association?

    The Small Business Association (SBA) is an agency established in 1953 by the U.S. government that provides various types of assistance to American small businesses. The SBA helps small businesses by providing access to capital and low-cost training, providing government contracts to qualified small businesses, and advocating for small businesses by reviewing legislation. 


    During the COVID-19 pandemic, the SBA launched the PPP program, which provided forgivable SBA loans to thousands of small businesses whose operations were impacted by the pandemic.

  • What is a product life cycle?

    A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. Understanding a product’s life cycle helps businesses make decisions regarding a product’s pricing and promotion, as well as whether to expand or cut a product. There are four general stages of a product’s life cycle: introduction, growth, maturity, and decline. Business owners track each of these stages carefully in order to find opportunities to gain competitive advantage over their peers.

  • What is the gig economy?

    The term gig economy is used to describe a labor market in which temporary or part-time jobs are commonplace. In a gig economy, companies tend to hire independent contractors and freelancers rather than full-time employees. While the positions available in a gig economy can provide workers with more flexibility than full-time, salaried roles, many commentators claim the transient, generally lower-paying jobs in a gig economy can hurt a worker’s longevity and overall satisfaction.

  • What is the Walmart effect?

    The Walmart effect refers to the loss in revenue and foot traffic that can hit smaller businesses once a Walmart opens in their area. A retailer the size of Walmart has the ability to dictate the price it pays to wholesalers at a magnitude which smaller companies cannot. As a result, Walmart is able to sell merchandise at a much lower price than its competitors in the area. When a Walmart opens the lower prices, and wider selection of merchandise draws customers away from smaller, local businesses.

Key Terms

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Small Business: A company of relatively limited size, as measured by its revenue, number of employees, or both.
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Small Business Grants for Women
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Empowering Your Business: How to Get a Women’s Small Business Grant
Female small business owner turning “Open” sign in her store
How Do Business Grants Work?
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Business Grant: Definition, Types, and Where to Find Them
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How to Apply for a Small Business Grant
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How Do Business Loans Work?
A business owner holds an “Open” sign.
Paycheck Protection Program (PPP) Loan Forgiveness: Requirements, When and How to Apply
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What Is an SBA Loan?
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How to Write a Business Plan for a Loan
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What Is an SBA Microloan, and How Does It Work?
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What Is an SBA 504 Loan, and How Does It Work?
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Small Business Contract Discrimination
Public Relations (PR)
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Media Kit: Meaning, Components, and Examples
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Sole Proprietorship
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Independent Contractor
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Manufacturing
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Don't Get Sued: 5 Tips to Protect Your Small Business
Business Process Outsourcing (BPO)
What Is Business Process Outsourcing (BPO), and How Does It Work?
Deliverables: A project management term describing the quantifiable goods or services that must be provided upon the completion of a project.
Deliverables: Meaning in Business, Types, and Examples
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Long Tail
Long Tail: Definition as a Business Strategy and How It Works
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Mom-and-Pop: Meaning and Examples for Businesses and Investors
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Product Life Cycle
Product Life Cycle Explained: Stage and Examples
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External Economies of Scale: Definition and Examples
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Program Evaluation Review Technique (PERT) Chart Explained
Units Per Transaction (UPT)
Units Per Transaction (UPT) Definition and How to Calculate
10 Years After the Financial Crisis: The Impact on Small Business
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Business Planning
What Are the Main Methods for Calculating Business Costs?
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5 Biggest Challenges Facing Your Small Business
7 Steps to Selling Your Small Business
7 Steps To Selling Your Small Business
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Are Business Ethics Important for Profitability?
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Small and Midsize Enterprise (SME): Definition and Types Around the World
6 Steps to a Better Business Budget
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Why Companies Stay Private
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How Can I Calculate Break-Even Analysis in Excel?
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5 Ways Small Businesses Are at a Disadvantage
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