Check if your company is a small business in 2018 to figure out how to set a cash limit, keep records and submit reports, what benefits you can count on. A table to help you - Small business: criteria for attributing 2018.

The criteria by which companies are classified as small businesses are established by Federal Law No. 209-FZ of July 24, 2007 (as amended of November 27, 2017 No. 356-FZ).

Who belongs to small businesses in 2018:

• economic societies and partnerships;
• production and consumer cooperatives;
• KFH (peasant (farm) households);
• IP (individual entrepreneurs).

That is, these are commercial companies that conduct certain types of activities and have special registration conditions. To classify an enterprise as small, the following limits must also be met (see table).

Small Business Criteria 2018

From August 1, 2016, by Decree of the Government of the Russian Federation of April 4, 2016 No. 265, a clarification was introduced: companies are classified as small businesses not by the amount of revenue, but by income. The income limit is calculated from the total income for all types of business activities and for all modes, if the company applies several. The limits remain the same. In fact, the revenue figures were simply changed to marginal income values. Based on the information received, the tax authorities compile a unified register of small and medium-sized businesses.

Note!

Some companies may not have been included in the register. In a letter dated 23.08.16 No. SA-4-14 / [email protected] the tax authorities said that they included the company in the register based on indicators for 2015. If the income or the average headcount for this period is above the limits, then the company was not included in the register, even if the indicators for previous years were normal. If the company is not in the register, but it falls under the criteria, you must apply through the tax service.

Small businesses do not need to confirm their status. All the necessary information on compliance with the criteria of a small business in 2018 is obtained from the tax authorities from the reporting. Income data is confirmed by tax registers. Companies on the simplified tax system have a book of accounting for income and expenses. You can confirm the composition of the founders using the decision to establish an LLC or an extract from the Unified State Register of Legal Entities (Article 11 of Federal Law No. 14-FZ of February 8, 1998).

Above, we talked about small businesses in 2018, who belongs to them. But there is another category of small companies - micro-enterprises.

Microenterprise criteria 2018: table

A micro-enterprise is also a small business (LLC or individual entrepreneur), for which the law sets its own values ​​for revenue and the number of employees. These are the lowest scores. But just like small and medium-sized enterprises (SMEs), micro-enterprises must meet the requirements for participation in the founders of the company of the Russian Federation (no more than 25%) and foreign legal entities or companies that are not small businesses (no more than 49%).

The LLC has two conditions. For JSCs, there is only one additional requirement (letter of the Federal Tax Service of Russia dated August 23, 2016 No. SA-4-14 / [email protected]). See table.

If a company belongs to a small business entity in 2018, it is entitled to take advantage of the following benefits.

Supervision holidays. From January 1, 2016 to December 31, 2018, supervisory holidays have been announced for small businesses. That is, non-tax audits are prohibited for them (Federal Law No. 246-FZ of July 13, 2015). There are only a few conditions: for the previous three years, the company must not have gross violations, as well as misconduct, for which they could suspend activities, cancel a license or disqualify a director. If a company is mistakenly included in the audit plan, it has the right to remove itself from the list.

Note!

The ban on inspections in 2018 does not apply to companies and individual entrepreneurs who were held liable under Part 2 of Art. 26.1 of the Federal Law of December 26, 2008 No. 294-FZ (disqualification, administrative suspension of activities, deprivation / suspension of a license).

Cancellation of cash limit. Small businesses in 2018 have the right not to set a limit on the cash balance on hand (clause 2 of the Directive of the Central Bank of the Russian Federation of March 11, 2014 No. 3210-U, letter of the Central Bank of the Russian Federation of December 08, 2014 No. 29-1-1-6 / 9698). You can cancel the limit at any time. It is only necessary to issue an order from the head (an example of an order can be downloaded from the link below). In practice, some inspectors allow only those companies that are included in the register of small businesses to waive the limit. This is a violation.

Simplified accounting and reporting. Small business entities have the right to apply simplified accounting methods and submit reports in a simplified form. There are simplified methods in almost every PBU. In addition, they are all listed in the information of the Ministry of Finance No. ПЗ-3/2015. It should only be taken into account that accounting benefits for small businesses do not apply to small companies for which a mandatory audit of financial statements is provided. These are all joint-stock companies, as well as LLCs with revenue for the previous year of over 800 million rubles.

Refusal to adopt local regulations containing labor law norms. According to Article 309.2 of the Labor Code of the Russian Federation, employers - small businesses - micro-enterprises have the right to completely or partially refuse to adopt local regulations containing labor law norms (internal labor regulations, regulation on remuneration, provision on bonuses, and others). In case of refusal from the acts, microenterprises are obliged to include in the employment contracts the conditions that, in accordance with the Labor Code of the Russian Federation, are prescribed in the acts.

Benefits for regional taxes. Local authorities have the right to establish benefits for small businesses in 2018. For example, according to the property tax from the cadastral value (clause 2 of article 372 of the Tax Code of the Russian Federation). The regions also have the right to set reduced rates for companies on the simplified tax system.

Participation in public procurement. In 2018, small businesses have an advantage when participating in government auctions. Government customers are required to purchase at least 15% of annual purchases from small businesses.

Small and medium-sized businesses (SMEs) are a social, legal and economic category that includes companies and individual entrepreneurs with a small number of employees and profits. Entrepreneurship of this type responds flexibly to changes in market conditions, but needs additional support for development.

Small business is a type of entrepreneurship, which is characterized by a small number of employees (up to 100 people), average revenue (up to 800 million rubles per year), and an emphasis on equity. This is not only an economic, but also a socio-political category, whose representatives are characterized by a special worldview.

Businessmen of this type quickly adapt to new changes, have high adaptability to any working conditions. SMEs often open those facets of the market that look too risky and dangerous. Importing Chinese goods, long-lasting nail coatings, making sushi - all this was first mastered by small companies, and only then they tried to subdue big business.

There are over 6 million small businesses in the United States, each generating up to $10 million in revenue each year. These organizations employ about a third of the entire working-age population with a permanent or temporary job. It is from here that the notorious “middle class” is formed, which is the backbone of the economic well-being of the country.

RF: legislative consolidation of small business

In our country, there is Federal Law N 209 of July 24, 2007 “On the development of small and medium-sized ...”, which defines the basic principles for classifying a company in this category. There are requirements for the organizational form, the average number of employees and revenue (maximum). The maximum income that an organization can receive is subject to revision by the Government of the Russian Federation, the current Decree is valid from August 1, 2016. Information about all individual entrepreneurs and organizations belonging to this category is collected in a special Register.

The main signs of a small business

The above Federal Law lists the various requirements for which an enterprise falls into the desired category. Legal entities cannot have a total share of participation of subjects of the Russian Federation, foreign firms, religious charitable, public associations over 25%. In addition, the company cannot be owned by other companies that are not SMEs, in the amount of more than 49%.

In the 1st half of 2016, about 218,500 small businesses were created in Russia, while 242,200 companies left the market. Just a year ago, the trend was different: instead of one organization that left the market, 2 new firms appeared. Their largest number is in the Central Federal District - 1.636.987. The record holder for the number of SMEs is Moscow: 451,979 microorganizations, 170,000 entrepreneurs: comparable to the population of a small European country.

Who is the engine of small business in Russia?

Approximately every 10 able-bodied person in the Russian Federation works for himself. Moreover, the vast majority of the self-employed (about 70%) are not registered as individual entrepreneurs and operate illegally. The unwillingness to officially secure the status is associated with bureaucracy, high contributions to the Pension Fund and uncertainty about one's own future. Another factor is that people simply don't see where their money is going, which causes legal nihilism.

Small and micro businesses are based on the following areas:

1. Construction, repair and decoration (at least 20%);
2. Programming, computer repair and related industries (about 11%);
3. Interior design (10%);
4. Hairdressing and beauty services at home (6%);
5. Tutoring (5%).

Small business in Russia - powerless and illegal?

In the Russian Federation, about a third of the population are citizens who are of working age, are not registered as unemployed, but are not registered at any enterprises. Approximately half of these people are interrupted by odd jobs, people have been employed in organizations for years, but receive a “salary in an envelope”. This is more typical for the province, where there are no other conditions for employment and employment.

However, another 8-9 million are representatives of small "gray" businesses who work either in splendid isolation or in small teams. Let's compare this with the number of legal individual entrepreneurs - 3.7 million people - and we will get the real figure of the shadow market. After all, all the money that the self-employed help out is in the economy, but for objective reasons they cannot be invested in banks, equipment and further development of their own business.

Problems of small business in Russia

1. Difficult access to support, subsidies, loans, new technologies;
2. Administrative measures of influence on the part of state bodies (high fines for violations of the law);
3. Difficult competition with large organizations in certain areas (trade, production, transport);
4. Wrong tax policy, drawing too many resources out of the new venture.

Differences between small and medium businesses

MB - mainly self-employment or seasonal involvement of workers to perform unskilled tasks: harvesting, transportation, packaging. The company or individual entrepreneur is localized in one locality and collects a small profit. Medium business is a mandatory attraction of more personnel (both qualified and unskilled workers), investments, active investment in the development of the enterprise.

Summary

So, small business is a pioneer in those areas in which it is difficult and risky for the state and large companies to invest. People come up with original models, and although many entrepreneurs “burn out”, some businessmen earn start-up capital for further growth.

The real assistance of the state should be to create such conditions under which it will be easier for the self-employed to legalize than to work "in the gray." In other words, people just need to be left alone for a while and see what happens.

Relations in the field of SME development are regulated by the norms of the Law “On Development ...” dated July 24, 2007 No. 209-FZ. Part 1 of Article 4 of this regulatory act establishes that SMEs include entities (economic companies, partnerships, industrial cooperation companies, agricultural farms and individual entrepreneurs) that have passed state registration in accordance with applicable law and meet a number of requirements.

The list of conditions, compliance with which gives the right to relate to SMEs, is established in Part 1.1. Art. 4 of Law No. 209-FZ and consists of 4 indicators (we will talk about them a little later).

In addition to the basic regulatory act, the documentation package in the field of application of indicators of relevance to SMEs includes other acts and letters, including:

• letter of the Federal Tax Service of Russia dated August 18, 2016 No. 14-2-04 / [email protected];
• rules approved by Decree of the Government of the Russian Federation of December 8, 2014 No. 1335;
• Decree of the Government of the Russian Federation “On the limit ...” dated November 22, 2017 No. 1412;
• Decree of the Government of the Russian Federation “On limiting ...” dated 04.04.2016 No. 265.

In addition, judicial practice helps to resolve this issue, for example:

• Resolution of the 9th Arbitration Court of Appeal dated July 19, 2017 No. 09AP-20234/2017 in case No. A40-227420/16;
• decision of the Supreme Court of the Russian Federation of October 19, 2017 No. 305-KG17-16725 in case No. A40-216724/2016.

Criteria for small and medium-sized businesses in 2020

The circumstances that make it possible to classify businessmen as SMEs include (part 1.1 of article 4 of law No. 209-FZ):

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1. One of the indicators below (for business entities or partnerships):

• the total share of the state, religious and/or public organizations, charitable and other fund companies in the share capital of an LLC is not more than 25%, with the total percentage of ownership of foreign companies or firms that are not SMEs, not more than 49%;
• assignment of the company's securities to the shares of the innovative economic cluster;
• implementation of activities related to the application of the results of intellectual creativity, which is a key activity, if the copyright holders for such results are state scientific institutions, state organizations of higher education;
• whether the organization has the status of a participant in the Skolkovo Innovation Center project;
• belonging of the founders of the company to organizations that provide state support for innovative activities and belong to public joint-stock companies (PJSC) with state property in the share capital from 50%; companies in which these PJSCs are authorized to dispose of a package of more than 50% of voting shares; state corporations; companies created as a result of the reorganization of the Republic of Kazakhstan Nanotechnologies.

1. The average number of the workforce does not exceed the established limit indicators.
2. The total income does not exceed the limit standards established for each group of SMEs.

SMEs - 2020 Eligibility Criteria by Headcount

According to paragraph 2 of part 1.1 of Art. 4 of Law No. 209-FZ, if the defendants correspond to one of the conditions of paragraph 1 of part 1.1 of Art. 4 listed above, then in order to recognize these persons as SMEs, the average number of members of the labor collective should not exceed:

• for micro-enterprises - 15 people;
• for small enterprises - 100 people;
• for medium-sized merchants - 250 people.

At the same time, in relation to some medium-sized companies, there is a clarification, in accordance with which the Government of the Russian Federation may establish other standards for the average list quantity (clause 2.1, part 1.1, article 4 of Law 209-FZ). Such defendants include merchants, the key type of entrepreneurship for which (with a profitable share from this production of at least 70% in the total amount) is:

1. Production of textile products.
2. Making clothes.
3. Manufacture of leather and leather products (manufacturing).

The final indicator of the average headcount for these persons involved is established by the Decree of the Government of the Russian Federation “On amendments ...” dated November 22, 2017 No. 1412 from December 5, 2017 - no more than 1000 employees.

SME - 2020 income criteria

Income, which makes it possible to attribute to SMEs persons falling under the criteria of paragraph 1 of part 1.1 of Art. 4 of Law No. 209-FZ, defined in paragraph 3 of part 1.1 of Art. 4. However, the norm under consideration is a reference and only indicates that the boundary values ​​of the specified indicator are established by the Government of the Russian Federation.

Decree of the Government of the Russian Federation dated 04.04.2016 No. 265 from 08/01/2016 introduced the following maximum volumes of the profitable part of entrepreneurial activity over the past year for SMEs:

• for micro-enterprises - 120 million rubles;
• for small enterprises - 800 million rubles;
• for medium-sized enterprises - 2 billion rubles.

The procedure for applying the criteria for small and medium-sized businesses

In addition to the direct indicators by which the status of the defendant as an SME subject can be determined, Art. 4 of Law No. 209-FZ contains a number of rules explaining the procedure for applying these conditions (parts 3-5, article 4):

1. The group of the SME subject is determined based on the value of one of the conditions given in Art. 4 of Law No. 209-FZ (by income or by the average number of employees).
2. If an individual entrepreneur who did not have employees in the reporting (last) year claims the status of an SME, the small business criteria regarding the amount of income received are applied to determine ownership.
3. Companies and individual entrepreneurs established and/or registered from August 1 of the current year to July 31 of the following year (hereinafter referred to as newly created merchants) and individual entrepreneurs with a patent taxation system are referred to as micro-enterprises.
4. If a partner in the Skolkovo Investment Center project is exempted from the obligation to submit tax reports, its group of belonging to SMEs is determined based on the average number of employees.
5. Correction of the category of the subject of SMEs occurs sequentially in the event of an increase or decrease in the marginal standards. In this case, indicators for 3 years are taken into account.
6. The change in the category of a newly created merchant (both organizations and individual entrepreneurs) takes place taking into account the indicators listed in Art. 4 of Law No. 209-FZ, when the indication that a particular person involved is a newly created merchant is excluded from the register of SMEs.
7. Newly created/registered merchants entered in the register of SMEs declare that they comply with the conditions for classifying as SMEs in the form approved by Order No. 113 of the Ministry of Economic Development of Russia dated March 10, 2016. Thus, they provide a reason for classifying them as one group or another.

Small, medium and large businesses - comparison of 2020 criteria

Microenterprises, small and medium businesses should be distinguished from each other. It is also necessary to clearly define the boundaries between these persons and large businesses, since this is important for assessing the presence or absence of rights to support measures established by Law No. 209-FZ.

Obviously, if the person involved does not fall under the conditions defined in Art. 4 of Law No. 209-FZ, then it cannot be entered into the register of SMEs. Thus, merchants can be classified as large business:

• not meeting at least one of the requirements listed in paragraph 1 of part 1.1 of Art. 4 of the same law;
• having a team, the average number of which exceeds 250 units;
• having income for the past period of more than 2 billion rubles.

Thus, in relation to medium and small businesses, the criteria in 2020, as well as before, are clearly regulated by Law No. 209-FZ, which makes it possible to clearly distinguish between business entities. Since the provisions of this law are quite difficult to understand, in the article we have presented them in an accessible form.

What is a small business? For many, the main criterion for classifying a company as a small business is the number of employees up to 15 people.

However, this is not always the case: many more employees can work in such an organization. Let's take a closer look at this concept.

Criteria for qualifying as a small business

The assignment of a company to this category is regulated by the Law “On the Development of Small and Medium-Sized Businesses in the Russian Federation” No. 209FZ (hereinafter referred to as Law No. 209-FZ). In particular, in his Art. 4 states that only registered in the prescribed manner can be small:

• business companies (for example, LLC) and partnerships;
• cooperatives - production, agricultural, consumer;
• farms;
• individual entrepreneurs.

In addition, the following conditions must be simultaneously met:

• average headcount for the past year for the above entities should not exceed 99 people;
• business income for the past year should not be more than 800 million rubles. At the same time, the income itself:
  • taken without VAT;
  • determined in accordance with the current Russian tax legislation;
  • summed up for all types of activities and taxation systems that are applied at the enterprise.
• if an entrepreneur in the past calendar year carried out activities without involving employees, he is assigned to the category only by income level;
• if organizations, in accordance with the tax legislation of the Russian Federation, have the right not to submit tax returns, on the basis of which it would be possible to determine the amount of income for the past year, then these persons are classified as small based on the number of their staff, which was recorded according to the data of the past calendar year. This condition is applied subject to the requirements provided for in paragraph 3 of Art. 4 Law No. 209-FZ;
• if an entrepreneur and a legal entity, regardless of the tax regime they have chosen, were registered between 01.08 of the current year and 31.07 of the next year, then these persons are recognized as micro-enterprises, but subject to the restrictions provided for in paragraph 3 of Article 4 of Law No. 209-FZ;
• The category of micro-enterprises includes entrepreneurs located only on, as well as companies with a headcount up to 15 people.

In addition to the above criteria, business partnerships and companies must meet at least one of the following conditions, in particular:

• the total share of participation in an LLC (if any) of the regions of the Russian Federation, municipalities, charitable foundations, religious and public organizations should not exceed 25%, and the share of foreign companies and (or) organizations that are not recognized as either small or medium-sized businesses - not over 49%;
• economic partnerships and companies are engaged in the introduction of products of intellectual activity (software, breeding products, etc.), the right to which belongs to their founders - budgetary or autonomous scientific institutions;
• if they have the status of a participant in the Skolkovo project.

Other additional criteria for classifying these companies and partnerships as small companies are set out in clause 1.1 of Art. 4 of Law No. 209-FZ.

Difference between small and micro enterprise

First of all, it is concluded in the number of employees:

• a small company is considered to have up to 99 employees (inclusive) and at least 15;
• micro - with a staff of up to 15 people.

In addition, a significant difference was also established in the level of income, which is determined summarily for all types of activities of the company, its tax systems, but without VAT and on the basis of Russian tax legislation only:

• for small ones - within 800 million rubles;
• for micro - up to 120 million rubles.

Based on these indicators, compliance with which must be simultaneous or subject to the provisions of Law No. 209-FZ, which allows the use of only one of the conditions, the following is established:

• the procedure for submission and forms of statistical reporting;
• the procedure for submitting tax, accounting, financial and other forms of reporting;
• the possibility of choosing and applying a specific tax system, etc.

Advantages and disadvantages

For small businesses, state support is provided for:

• in the form of granting for use and (or) possession of real estate objects that are in state or municipal ownership;
• in the form of subsidies, guarantees for the obligations of companies, budget investments;
• in the form of consultations provided by state authorities and local self-government, or in the form of compensation for the costs of paying for consultations;
• in the form of assistance to organizations of individual industries in obtaining patents and licenses, in creating conditions for training personnel of a certain qualification, etc.

Such enterprises have great advantages in the field of taxation and accounting. They are provided with state support in the implementation of leasing programs, etc.

Another advantage is the relatively small number of personnel, the structure and form of management, which:

• make the company more mobile, that is, the company can move without serious damage to a different address or quickly restructure its activities;
• allow you to quickly make the necessary management decisions without waiting for the meeting of all shareholders or the board of directors;
• help control all production processes and ongoing financial flows;
• reduce the volume of workflow and the cost of its maintenance, etc.

However, there are also disadvantages, in particular:

• as a rule, for such enterprises a higher interest rate and more stringent lending conditions are provided;
• very often they are even denied loans;
• they do not always receive equal access to participation in tenders with large and even medium-sized companies;
• they cannot always provide themselves with the necessary volume of current assets.

Accounting

Representatives of small businesses have many advantages in terms of maintaining and organizing the accounting process:

• for such enterprises, a simplified version of accounting is provided, which reduces the amount of documentation and, and also allows you to use a simplified system of accounting registers or do without them at all;
• a simpler reporting form has been established and its volume has been reduced - it is enough to hand over and. If necessary, these forms are added. As for the forms themselves, companies can make changes to them in accordance with applicable laws;
• you can not install, but it is necessary to issue an order about this;
• the head of the enterprise can take over the accounting for himself, about which an order must also be issued.

As for entrepreneurs, they can limit their accounting only to registration and other indicators. In addition, they may not set a limit at the cash desk and not draw up cash documents.

Taxation and benefits

Unlike large and even medium-sized organizations, small companies can choose between and the use of special regimes, which have their own restrictions on the volume of revenue, number, residual value of assets and types of activities.

The most important thing in this case is the strict control of these restrictions so that the enterprise does not lose the right to preferential treatment.

There are no separate tax benefits. Unless these benefits are provided for by regional or local legislation on taxes paid, respectively, to the regional or local budget.

However, there are tax incentives that are designated for results or activities, for example:

• if the revenue for 3 calendar months did not exceed a total of 2 million rubles, then the company receives exemption from even being on a general regime;
• for a period of 10 years, a participant in the Skolkovo project receives exemption from and added value, etc.

In other words, the availability of benefits must be clarified in the provisions of tax legislation. As for the choice of taxation system, the most acceptable are:

• . It is suitable for all types of activities, provides for two options for calculating the fee - from income or from the difference between income and expenses, exempts from paying VAT, income tax.
• patent system. It is available only to entrepreneurs and applies to a closed list of activities established in the Tax Code of the Russian Federation. It is convenient because it immediately determines the amount of the fee that must be paid upon obtaining a patent, removes the obligation to pay VAT, property tax.
• . It is suitable only for certain types of activities that are defined by tax legislation. It replaces the payment of property tax, income tax and value added tax.
• . This system is used only by agricultural producers.

You can learn about all the options and nuances of choosing a taxation system from the following video:

Do I need to verify my status?

Only when it is expressly required by law. For example, for the submission of accounting and tax reporting, such confirmation is not needed, since the tax structure immediately sees the amount of revenue and the number of employees of the enterprise.

But to participate in a competition or an open auction, you will need to confirm the status of a small business. To do this, the company reflects in the application for participation its compliance with the necessary criteria.

There are many different forms of business in the market. Some of them are large in volume, others serve a small number of customers. And most importantly, some types of commerce in themselves involve the development to a certain size. Small, medium and large business - what is it, what are the features and differences of each of them will be described here.

Definition of concepts

Entrepreneurship is any independent systematic commercial activity. This means that it is initially aimed at making a profit for the sale of its goods, services, the provision of property for use, and so on. Regardless of how the work is carried out, it must be registered in the manner prescribed by law.

The size of the enterprise determines many unique criteria for its work. The state traditionally supports small firms by reducing taxes and other obligatory payments, but it imposes many requirements on large ones, since they bring huge income. Naturally, it is important for young entrepreneurs to understand the difference between all forms in order to properly conduct their activities.

Small business is by far the most common. It is easier to organize it, even with little or no work experience. Gradually, the size can increase to medium, by increasing the annual turnover and attracting more resources.

Only a company that covers several regions of the country or has entered the international level can be called a large enterprise. It always has a large number of end users, which means that demand exceeds supply.

Key Features of Entrepreneurship

Each of the above forms has its own unique features and characteristics. But some of them combine commerce in general:

Any enterprise becomes a participant in market relations.

Companies in their work always face two main aspects: economic and legal. It is prohibited to conduct activities without taking into account organizational and legal norms.

The main function of any firm is to participate in the economy of the country in which it is located, and to introduce the required innovations in order to constantly develop it. We are talking here about the use, the search for alternative sources of energy, raw materials and other things.

Organizations are always dependent on changes in the market for their services and sales, they must adapt to them so that the work cycle does not stop.

All this is important for the company, regardless of its size, number of customers, annual turnover.




What is a small business: definition and features

Contrary to popular belief, small businesses include not only individual entrepreneurs, but also small companies with about 50 employees. The main features of this form are:

1. Small territory. We are talking here not only about the area occupied by the office of the company, but also the area of ​​​​customer service.

   Limited list of activities. Shops, travel agencies, small industries, dental or other small clinics, private educational institutions specializing in courses can work on this principle.

   The minimum set of checks. Regulatory authorities provide small companies with supervisory holidays, and when they end, the period for conducting inspection activities does not exceed 50 hours a year.

   The status does not need to be confirmed by special means. It is determined by the annual turnover, a certain number of employees and the share ratio to the authorized capital.

   Medium business: definition and features

   Such firms differ in coverage area. Usually they include a whole network that is able to serve a large client audience. Strictly speaking, they do not even have to conduct their work in the territory of one city. Networkers can affect the whole region, but at the same time not enter the market of the neighboring region. Distinctive features can also be called:

   1. Slow adaptation to changing market conditions.

      Orientation to improve the quality of goods or customer service.

      The staff is from 101 to 250 people who simultaneously serve the enterprise.

      The annual turnover is not less than 801 million rubles and not more than 2 billion.

   As for the areas of activity, this form of entrepreneurship is characteristic of network trading companies, construction companies, and large medical centers. In the global economy, it is medium-sized organizations that play the largest role, bringing the state about a third of all income. At the same time, no tax breaks or other supporting measures are being taken in relation to them.

   Big business

   Large companies are enterprises that produce a significant proportion of all goods or services in their industry. Their volumes are noticeable in everything: the number of employees, the number of sales, the annual turnover. But most importantly, they do not work within the framework of one specific territorial market, but in several regions of the country or at the international level. Signs of such enterprises can be considered:

   Large staff of employees (at least 251 people).

   Annual income from 2 billion rubles.

   Strict adherence to inventory control procedures.

   Large shopping areas.

   The most popular representatives of a large entity can be considered such venerable giants as Apple, Bosch, Samsung, Coca Cola, BMW. Since they have to work in many countries at once, they must adhere to global legislation and take into account the norms of each specific market. In addition, among the shareholders of the company can be not only merchants, but also the state. This gives some indulgence in the work, but at the same time imposes additional obligations.

   
   

   Main advantages

   Each of the presented forms of entrepreneurship has its advantages and disadvantages. Let's take a look at them one by one to get the full picture. Small Business Excellence:

   Small initial capital. To open a company, it is enough to find funds, and then gradually increase cash injections.

   Small expenses for maintenance and payment of mandatory payments, including wages and tax deductions.

   The ability to quickly respond to changes in the country's economy and adapt to them without loss.

   Quick reimbursement of spent funds and profit. Depending on the field of activity of the company, this period can be from six months to one and a half years.

   Small business in the future is able to become medium and large, and therefore ensure the availability of new jobs. At the same time, a smooth entry into the markets allows young merchants to feel comfortable.

   As for the average institution, its advantages can be considered:

   Creating a large number of vacancies.

   High productivity of work and investments.

   Good profitability.

   Stability in competition.

   At the same time, at this stage, entrepreneurs face a large number of difficulties, but we will talk about them a little later.

   As for the advantages of large firms, they are fundamentally different. To begin with, it is these organizations that ensure the economic stability of their industry and the country as a whole. Also, they can constantly contribute to the business and change the overall picture of commerce.

   Cons and risks

   

   As mentioned earlier, any form of entrepreneurship has its drawbacks. It is almost impossible to avoid them, so the only thing left for businessmen is to accept them and build their work in such a way as not to feel the negative aspects. Small organizations are characterized by the following imperfections:

   High risk of failure, especially if the owner of the firm has no commercial experience.

   The low professional level of both employees and managers, because of which the organization cannot reach the proper level of development.

   Difficulties in the need to conclude a loan agreement.

   To sum up the main result, the main disadvantage is the manager's inexperience and lack of useful connections. Having at least one thing, he can build a successful business without much difficulty.

   The disadvantages of medium-sized companies include the highest level of competition and the need for complex organizational work. Obtaining permits, raising serious funds - all this can be avoided by small firms, but not starting their active growth.

   Cons of big commerce can be called:

   Excessive concentration on the economies of the countries in which business is conducted.

   Narrow localization of economic relations.

   Inability to go beyond a certain company.

   If we compare all forms of entrepreneurship in terms of advantages and disadvantages, then the latter will still be in a more advantageous position, since its negative aspects are more than covered by huge incomes.

   How to determine the difference between small business and medium and large

   The difference between all types of business activities lies in the details. It is best to present them in a table.

   Distinctive features	Small	Average	Large
   Coverage	One enterprise	A network of firms in a city or region.	Network in different regions of the country or international.
   Difficulties in getting a loan	Any amount	big finance	Missing
   Adaptability		It is difficult and slow to adapt.	Often he himself becomes the initiator of making changes.
   Amount of workers	No more than 100 people.	From 100 to 250 employees.	Over 251 people.
   Annual income	Up to 2 million rubles.	Up to 800 million rubles.	Up to 2 billion rubles.

   In addition to this, one more difference can be added between small, medium and large businesses. The state in every possible way supports small firms and huge companies, of which it is a shareholder. At the same time, medium-sized businesses literally have to face fierce competition. Coming to this level of development, you need to be prepared for such difficulties.

   Basis for success

   The well-being of each company depends on many factors, but if we talk about the size of the enterprise, then there is some base that should be followed in order to achieve maximum results with a minimum waste of resources.

   For a small organization, employees are extremely important, including those in leadership positions and a clear pre-prepared development plan. If you follow it and observe the effective work of each employee, you can achieve very important victories and accomplishments.

   Medium businesses need to learn how to quickly respond to changing conditions. Thus, you can get rid of one of the main drawbacks. No less success can be achieved with effective management. It is the management team that can facilitate rapid adaptation.

   For a long-term operation, a large business needs a clear strategy that can function normally in a year, five or even ten years, that is, you should always think about the future. This will allow us to survive in the most difficult economic crisis, getting out of it without big losses.

   Regulatory regulation

   In our country, any entrepreneurial activity is regulated by dozens of legislative and regulatory acts. The most important among them are:

   Civil Code, since we are talking about civil law relations.

   The Law on the Protection of the Rights of Legal Entities and Entrepreneurs, which guides the supervisory authorities.

   Tax Code as one of the key documents.

   Entrepreneurship Development Law.

   In addition to them, you must follow the local regulations that apply in the territory where the business is conducted. This means that large firms often have to look back at international laws and regulations. To comply with all the nuances, you should enter the rate of a lawyer in the staffing table. Small firms are enough, while medium and large companies need a permanent contract.

   Efficiency mark

   

   The main indicators by which the success of the functioning of an enterprise is traditionally assessed are profitability and profitability. But there are other important aspects on which the final result depends. They can be divided into 3 key groups:

   A coefficient that characterizes how well the costs of production and investment investments pay off.

   A parameter that expresses the overall profitability from sales.

   Indicators that determine the return on capital.

   It is not so difficult to correlate all the coefficients in one scheme and calculate the real profit, but the process requires painstaking work. If profitability is below the level that the company hoped for, some changes should be made to the work.

   You need to calculate the budget in this way several times a year: in each quarter, and then in the final report. Large and medium-sized enterprises, in addition, must keep separate records for each of their offices in order to see real changes and weaknesses.

   Conclusion

   Large, small and medium-sized businesses have differences and are very significant. But at the same time, almost every entrepreneurial activity starts from scratch. Therefore, young businessmen have to go through all 3 forms of entrepreneurship. Naturally, on their way, they are guaranteed to encounter the shortcomings of each of the systems. At the same time, the main task will be to increase dignity in order to level the negative sides.

   The main thing in the work is not to forget to adhere to the established rules and norms, otherwise it will not be possible to enter new markets and reach a large audience. One should not even think that big business is a guarantee of success and longevity. Even the strongest companies sometimes face economic conditions that they cannot survive, while small firms simply adjust to new conditions and continue to grow their assets.