Describe what a small business is. Solution Small bussiness is a privately owned and operated business. Usually a small business has a small number of employees. The Small business Administration (SBA) is in charge of of the legal definition of small business in the United States, setting a criteria that includes number of employees or annual receipts The following criteria is used by the SBA to define a small business: Please note that each country has its own regulatory agency that control small business, the information below only applies to US. Source: SBA.gov: The US Small Business Administration https://www.sba.gov/.