Whether you’re a sole proprietor, partnership, or corporation, the SBA has a business plan for you. The SBA’s table of acceptable sizes breaks down acceptable sizes for small businesses by industry. For example, agriculture has a $750,000 average receipts cap, while mining, construction, and utilities each have a range of 250 to 1,500 employees. If you’re in one of those industries, the maximum number of employees is 500.
When it comes to defining what’s a small business, the definition is different across countries and industries. In the U.S., small companies are defined by their sales volume, value of their assets, and net profit. Some countries have a combination of factors, so a manufacturing enterprise may qualify as a small business. In India, a service enterprise must have an annual turnover of under Rs 50 crore. In other countries, the amount of investment needed to start a business must be less than $10 million.
A high turnover rate is costly for both the employee and the business. It costs an average of 33 percent of the salary to replace an employee, which is why many small businesses don’t understand why turnover is so high. Hiring a human resource management company can help you make the right hiring decisions based on compensation and the market in your area. Choosing a HR company will help you avoid the pitfalls of hiring a new employee and retain the ones you have.