Noheartfeeling’s Blog

Small-size businesses

Posted on: November 23, 2009

2.1 Definition of Small-size businesses

A small business may be defined as a business with a small number of employees. The legal definition of “small” often varies by country and industry, but is generally under 100 employees in the United States while under 50 employees in the European Union (In comparison, the American definition of mid-sized business by the number of employees is generally under 500 while 250 is for that of European Union). These businesses are normally privately owned corporations, partnerships, or sole proprietorships. In Australia, small business is defined as 1-19 employees and medium businesses are made up of 20-200 employees.
However, other methods are also used to classify small companies, such us annual sales (turnover), assets value or net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals).
Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, solicitors, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing etc. Small businesses are usually independent.
• The smallest businesses, often located in private homes, are called micro businesses (term used by international organizations such as the World Bank and the International Finance Corporation) or SoHos. The term “mom and pop business” is a common colloquial expression for a single-family operated business with few (or no) employees other than the owners. When judged by the number of employees, the American and the European definitions are the same: under 10 employments
• 1 Advantages of small business
• 2 Problems faced by small businesses
• 3 Marketing the small business
• 4 Franchise businesses
• 5 Mom and pop small businesses
• 6 Small business bankruptcy
o 6.1 Certification and trust
o 6.2 Contribution to the economy
• 7 Sources of funding
• 8 International differences
• 9 See also
• 10 Referencesployees.
2.2 Kinds of small-size businesses
A good overview of all the kinds of businesses you could start can be found by looking at how the federal government classifies businesses. All federal data are now collected using the North American Industrial Classification System (NAICS) of Businesses. This system identifies 1170 industries each of which include a number of specific types of businesses. The 1170 industries are grouped into general categories: construction, education and health services, financial activities, government, information, leisure and hospitality, manufacturing, natural resources and mining, other services, professional and business services, transportation and utilities, and wholesale and retail trade.
Click on the industry links to find out more about the economic outlook of each of the industries. Highlighted businesses describe more about running that particular business. This list is also available with the businesses listed in Alphabetical Order.
Air Conditioning and Heating Company
Commercial Building Construction
Drywall Contractors
Electrical Contractors
Flooring Contractors
Framing Contractors
Glass and Glazing Contractors
Highway, Street, and Bridge Construction
Land Subdivision Construction
Masonry Contractors
New Housing Construction Oil and Gas Pipeline Construction
Painting Contractors
Plumbing Contractors
Poured Concrete Foundation
Power and Communication Line Construction
Residential Remediless
Roofing Contractors
Siding Contractors
Structural Steel Contractors
Water and Sewer Line Construction

Education and Health Services
Adoption Agencies
Aircraft Rental Instruction
Alternative Health Website
Ambulance Services
Ambulatory Surgical and Emergency Centers
Apprenticeship Training
Art School Gallery
Automobile Driving Schools
Blood and Organ Banks
Business Schools
Child and Youth Services
Chiropractor Offices
Community Food Services
Computer Training
Cosmetology and Barber Schools
Dance Studios
Day Care Services
Dentist Offices
Diagnostic Imaging Centers
Educational Support Services
Elementary Schools
Emergency and Other Relief Services
Exam Preparation
Family Planning Centers
Fine Arts Schools
Flight Training
HMO Medical Centers Home Health Care Services
Homes for the Elderly
Junior Colleges
Kidney Dialysis Centers
Language Schools
Management Development Training
Medical Laboratories
Mental Health Practitioner Offices
Nursing Care Facilities
Occupational Therapist Offices
Optometrist Offices
Outpatient Mental Health Centers
Physical Therapist Offices
Physician Offices
Podiatrist Offices
Professional Schools
Residential Mental Health Facilities
Residential Mental Retardation Facilities
Secondary Schools
Secretarial Schools
Speech Therapist Offices
Sports and Recreation Instruction
Substance Abuse Facilities
Temporary Shelters
Vocational Rehabilitation Services
Financial Activities
Aircraft Rental and Leasing
Appliance Rental
Auto Insurance Claims
Claims Adjusting
Commercial Banking
Consumer Electronics Rental
Consumer Lending
Credit Card Issuing
Credit Unions
Direct Health and Medical Insurance
Direct Life Insurance
Direct Property and Casualty Insurance
Direct Title Insurance Carriers
Equipment Rental and Leasing
Financial Planner
Formal Wear and Costume Rental
Insurance Agencies and Brokerages
Investment Advice
General Rental Centers Home Health Equipment Rental
Investment Banking
Lessons of Real Estate Property
Mortgage Loan Brokers
Non mortgage Loan Brokers
Offices of Real Estate Agents and Brokers
Pension Funds
Portfolio Management
Property Manager
Real Estate Agent
Real Estate Appraisers
Real Estate Investment Trusts
Sales Financing
Savings Institutions
Securities and Commodity Exchanges
Securities Dealing
Trust, Fiduciary, and Custody Activities
Vehicle Rental and Leasing
Video Tape and Disc Rental
Administration of Public Programs
American Indian and Alaska Native Tribal Governments
Correctional Institutions
Electric, Gas, and Other Utilities
Executive Offices
Fire Protection
International Affairs Counsel and Prosecution
Legislative Bodies
National Security
Parole Offices and Probation Offices
Police Protection
Public Finance Activities
Regulation of Agricultural Marketing and Commodities
Space Research and Technology
Almanac Publishers (except Exclusive Internet Publishing)
Book Publishers
Art Film Theater
Atlas Publishers
Cable and Other Program Distribution
Cable Programming
Cellular Telecommunications
Data Processing
Directory Publishers
Greeting Card Publishers
Internet Publishing
Internet Service Providers
Mailing List Publishers
Motion Picture Production and Distribution
Motion Picture Theaters Music Publishers
News Syndicates
Newspaper Publishers
Periodical Publishers
Radio Networks
Radio Stations
Recording Studio
Satellite Telecommunications
Software Publishers
Sound Recording Studios
Tele production Services
Television Broadcasting
Video Production and Distribution
Web Hosting
Web Search Portals
Wired Telecommunications Carriers
Leisure and Hospitality
Actors, Independent
Advertising Copywriter
Aerobic Dance and Exercise Centers
Agents and Managers
Amateur Sports Teams, Recreational
Amusement and Theme Parks
Amusement Arcades
Animal Exhibits, Live
Animal Safari Parks
Animated Cartoon Artists, Independent
Announcers, Independent Radio and Television
Archery Range
Art Film Theater
Art Gallery
Art Restorers, Independent
Art School Museum
Artists, Independent
Athletes, Amateur, Independent
Athletic Club Facilities, Physical Fitness
Automobile Racing Teams
Aviation Clubs, Recreational
Bed-and-Breakfast Inns
Botanical Gardens
Bowling Centers Campgrounds
Country Clubs
Dance Companies
Dinner Theaters
Fitness Centers
Golf Courses
Historical Sites
Independent Artists
Independent Performers
Musical Groups and Artists
Nature Parks
Recreational Sports Centers

RV Parks
Skiing Facilities
Sports Recreation Guides
Sports Teams and Clubs
Sports Trainers
Theater Companies
Aircraft Equipment Maker
Aircraft Manufacturing
Animal Food Manufacturing
Apparel Manufacturing
Arts and Crafts
Canvas Work
Cement Manufacturing
Chemical Manufacturing
Clay Product Manufacturing
Commercial Bakeries
Commercial Printing
Computer Equipment Manufacturing
Cross Stitch
Electronic Manufacturing
Fabricated Metal Product Manufacturing
Food Manufacturing
Furniture Manufacturing
Glass Product Manufacturing
Iron and Steel Mills
Jewelry Manufacturing
Lace Making
Luced Machine Shops
Machinery and Equipment Manufacturing
Metal Manufacturing
Mineral Product Manufacturing
Motor Vehicle Manufacturing
Paper Product Manufacturing
Petroleum Refineries
Plastics Product Manufacturing
Retail Bakeries
Rubber Product Manufacturing
Rug Making
Textile Product Milling
Tobacco Product Manufacturing
Trade binding
Wood Preservation
Wood Product Manufacturing
Natural Resources and Mining
Agriculture Farm Business
Agriculture Fruit Farm Business
Agriculture Produce Farm Business
Apple Orchards
Coal Mining
Fishing Logging
Metal Mining
Nonmetallic Mineral Mining
Nursery / Greenhouse
Oil and Gas Operations
Support Activities for Mining
Timber Tract Operations
Other Services
Animal Daycare
Appliance Repair and Maintenance
Aquarium Services
Astrology Tarot Card Business
Auto Body, Paint, and Interior Repair and Maintenance
Auto Decal Business
Auto Detailing
Automobile Inspection Business
Automobile Restoration
Automotive Glass Replacement Shops
Automotive Oil Change and Lubrication Shops
Automotive Repair
Barber Shops
Beauty Salons
Business Associations
Car Wash
Cemeteries and Crematories
Civic and Social Organizations
Conservation Organizations
Diet and Weight Reducing Centers
Electronics Repair and Maintenance Environment Organizations
Equipment Repair and Maintenance
Funeral Homes
Grant making Foundations
Household Goods Repair and Maintenance
Human Rights Organizations
Labor Unions and Organizations
Laundries and Drycleaners
Linen Supply
Machinery Repair and Maintenance
Parking Lots and Garages
Personal Goods Repair and Maintenance
Pet Care (except Veterinary) Services
Photofinishing Laboratories
Political Organizations
Private Households
Professional Organizations
Religious Organizations
Social Advocacy Organizations
Voluntary Health Organizations
Wildlife Organizations
Professional and Business Services
Accounting Firm
Administrative Service Business
Advertising Agency
Advertising Consulting
Advertising Material Distribution Services
Agricultural Consultant
Architectural Engineering
Architectural Services
Armored Car Services
Art Packaging Installation
Art Shipping
Auditing Services
Automated Accounting Systems
Building Inspection Services
Business Support
Carpet and Upholstery Cleaning Services
Certified Public Accountants
Cleaning Service
Collection Agencies
Computer Related Services
Convention and Trade Show Organizers
Convention and Visitors Bureaus
Copy Shops
Corporate, Subsidiary, and Regional Managing Offices
Court Reporting
Credit Bureaus
Drafting Services
Employment Agencies
Engineering Services
Environmental Consulting Services
Exterminating and Pest Control Services
Geophysical Surveying and Mapping Services
Graphic Design Services
Hazardous Waste Collection
Human Resources Consulting Services
Industrial Design Services
Interior Design Services Investigation Services
Janitorial Services
Landscape Architects
Landscaping Services
Marketing Consulting Services
Marketing Research
Office Administration Services
Packaging and Labeling Services
Payroll Services
Photography Studios
Private Mail Centers
Public Opinion Polling
Public Relations Agencies
Repossession Services
Research and Development Agencies
Security Guards
Security Systems Services
Septic Tank Services
Solid Waste Collection
Sports Tour Operators
Stenotype Services
Surveying and Mapping Services
Tax Preparation Services
Telemarketing Bureaus
Telephone Answering Services
Temporary Services
Testing Laboratories
Title Abstract and Settlement Offices
Travel Tour Operators
Translation and Interpretation Services
Travel Agencies
Veterinary Services
Web Design

Transportation, Warehousing, and Utilities
Aircraft Charter Services
Air Traffic Control
Aircraft Weighing Systems
Airport Shuttle Service
Airport Taxi
Bus Transit Systems
Charter Bus Industry
Employee Bus Transportation
Freight Transportation Arrangement
Limousine Service
Local Delivery
Local Messengers
Marine Cargo Handling
Motor Vehicle Towing
Natural Gas Distribution Packing and Crating
Pipeline Transportation
Port and Harbor Operations
Postal Service
Power Generation
Scenic and Sightseeing Transportation
School Bus Transportation
Sewage Treatment Facilities
Special Needs Transportation
Steam and Air-Conditioning Supply
Taxi Service
Warehousing and Storage
Water Supply and Irrigation Systems
Water Transportation
Wholesale and Retail Trade
Antiques Dealer
Art Dealers
Art Sales Custom Framing
Art Supply Store
Artificial Flowers Importers
Athletic Shoe Stores
Automobile Dealership
Automotive Parts and Accessories Store
Boat Dealers
Book Stores
Building Material Dealers
Business to Business Electronic Markets
Clothing Stores
Commercial Equipment Wholesalers
Construction Material Wholesalers
Crafts Stores
Department Stores
Durable Goods Wholesalers
Electronic Auctions
Electronic Parts Wholesalers
Electronic Shopping
Electronics Stores
Equipment Wholesalers
Farm Product Wholesalers
Farm Supply Stores
Fuel Dealers
Garden Centers
Gasoline Stations
Gift, Novelty, and Souvenir Stores
Grocery Wholesalers
Hardware Wholesalers
Health and Personal Care Stores
Hobby, Toy, and Game Stores Home Centers
Home Furnishing Stores
Home Furnishing Wholesalers
Household Appliance Stores
Industrial Wholesalers
Internet Auctions
Jewelry Stores
Liquor Stores
Luggage and Leather Goods Stores
Mail-Order Houses
Manufactured (Mobile) Home Dealers
Motor Vehicle Dealers
Motor Vehicle Wholesalers
Musical Instrument and Supplies Stores
New Parts Wholesalers
News Dealers and Newsstands
Office Supplies and Stationery Stores
Outdoor Power Equipment Stores
Personal Service Wholesalers
Pet and Pet Supplies Stores
Pharmacies and Drug Stores
Prerecorded Tape, Compact Disc, and Record Stores
Professional Equipment Wholesalers
Retail Store
Sewing, Needlework, and Piece Goods Stores
Sporting Goods Stores
Supplies Wholesalers
Tobacco Stores
Used Merchandise Stores
Vending Machine Operators
Warehouse Clubs and Super centers
Wholesale Trade Agents and Brokers
If you are interested in finding out what industry a business is in so you can learn more about the industry as a whole, you can search the NAICS database with a word from the business name and it will give you a variety of possibilities for businesses and where they fit in the industry classifications.

2.3 Small – size Businesses in Indonesia
Indonesia is not the easiest place in the world in which to do business. The ‘World Competitiveness Scoreboard’ currently ranks Indonesia at 45, only two places ahead of Russia (47), and in stark contrast to countries such as Australia (13), Singapore (2) and the US (1). Clearly, in terms of the measures used by the producers of this scoreboard, Indonesia at the moment is found severely wanting, with its potent brew of traditional cultures, bureaucracy, legal uncertainty and social instability combining to give it the appearance of being a rather hostile place for trade and business. Indonesia is currently undergoing a radical transition towards becoming a more modern and efficient economy, and the road ahead remains uncertain.

Nonetheless, given a proper understanding of cultural, social and legal-regulatory environments, business and investment in most parts of Indonesia is relatively safe and profitable. Many promising changes are underway in Indonesia – notwithstanding the pain being experienced by many sections of Indonesian society – and there is good reason to be hopeful Indonesia shall emerge from its present trial-by-fire to become both an attractive investment destination, and a profitable market for Western products.

This essay seeks to give an overview of those elements that are important when undertaking business in Indonesia, including the social and cultural landscape, recent developments regards ‘governance’, law and legal certainty, business structures, and labor issues. Much emphasis is given to the issue of culture, more specifically, the perceptions, outlooks and/or beliefs that affect human interaction. In the past, perhaps, Western business peoples understanding of ‘culture’ has been relegated to the realm of manners or etiquette, of simplistic ‘do’s and don’ts’. However, cultural misunderstanding or miscommunication is generally far more likely to occur at the level of perception and outlook, rather than etiquette. This is not to suggest that etiquette is unimportant, but merely to attempt to shift emphasis from those external or visible cultural expressions to those expressions that are not immediately obvious, in particular as this affects communication.

The Western businessperson in Indonesia must try to remain conscious of the possibility of ‘difference’ when interacting with Indonesians. Of all the nations of East Asia, Indonesia arguably remains the most strongly traditional in terms of its cultural characteristics and outlooks. In the bustle of Jakarta’s traffic, tall buildings and gleaming shopping centers it is all too easy to think of Indonesia as a modern nation, albeit poor, with outlooks and aspirations that more-or-less match those of the West. However, beneath these thin modernist veneers beats the sound of a number of ‘different drummers’. Even apparently ‘Westernized’ Indonesians, including those with a solid Western tertiary education, cannot break free from those patterns, values, attitudes and outlooks formed out of the substratum of their indigenous culture.

Westerners often forget that they too are products of culture. Although far fewer Westerners than in the past profess Christianity, nevertheless Judeo-Christian and protestant humanist values and attitudes permeate the very essence of Western culture. Many Westerners may subconsciously consider these values to be universal in nature, standing above and perhaps even subordinating traditionalist values and outlooks. But whatever our convictions, when communicating with those who may not share a similar worldview, the possibility must be left open that what we believe to be self-evident and/or right may not be shared by everyone.


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