Small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. A local bakery that employs 10 people is an example of a small business.

1. Small Business

2. • Introduction
• Importance
• Features
• Structure
• Capital
• Formation
• Assistance
• Tax Concession
• Examples
Contents of Small Business :-

3. Small Business
Small business is an independently owned and
operated company that is limited in size and in
revenue depending on the industry. A local bakery that
employs 10 people is an example of a small business.

4. Importance of Small Business :-
Contributi
ons
Economic
Growth
Adaptabili
ty to
Changing
Climates
Future
Growth

5. Features of Small Business :-
Revenue and Profitability
•The maximum revenue allowance for the small business
designation is set at $21.5 million per year for service businesses
Employees
•Small-scale businesses employ smaller teams of employees than
companies that operate on larger scales
Market Area
•Small-scale businesses serve a much smaller area than corporations
or larger private businesses
Location
•A small-scale business, by definition, can be found only in a limited
area

6. Small Business
Capital Formation Assistance
Tax
Concession

7. What Is Capital?
Generally speaking, the
term ‘capital’ refers to any
financial resources or assets
owned by a business that are
useful in furthering
development and generating
income. However, in
different contexts, the term
can have a variety of other
meanings.

8. What is 'Working Capital'
• Working capital is a measure
of both a company's
efficiency and its short-term
financial health. Working
capital is calculated as:
• Working Capital = Current
Assets - Current Liabilities

9. Sources Of Working Capital
Financing:
Equity
• You might have to rely on equity funds for short-term working capital needs.
Trade creditors
• If you have good relationship established with your trade creditors, you might
be able to solicit their help in providing short-term working capital.
Factoring
• Factoring is another resource for short-term working capital financing. A
factoring company buys your account receivable and then handles the
collection.
Line of Credit
• Lines of credit are not often given by banks to new businesses.
Short-Term Loan
• While your new business may not qualify for a line of credit from a bank, you
might have success in obtaining a one-time short-term loan (less than a year)
to finance your temporary working capital needs

10. Formation For A Small Business
Sole Proprietorship
If you’re the sole owner
of your business and
never legally formed
the company, you’re
running a sole
proprietorship
Limited Liability
Corporation
It is a business structure
that combines the pass-
through taxation of a
partnership or sole
proprietorship with
the limited liability of
a corporation.
S-Corporation (S-
Corp)
S-Corp are corporations
that elect to pass
corporate income,
losses, deductions, and
credits through to their
shareholders for federal
tax purposes
The three most popular legal formations for small businesses are:

11. Assistance For Small Business
• Free help is available from public and private sources to help small
business start-ups or expansions. Most of this aid involves educating
and training business owners on how to run a business more
effectively with tips on organization, budgeting, marketing, and
growth planning. Assistance is offered online, over the telephone, or
face-to-face.

12. Assistance For Small Business
• The Assistance for setup or expansion is provided by following ways :-
Government
Help
Help Close
to Home
SCORE
Low
Interest
Loans,
Technology
Grants
Private Help

13. Technology Assistance To SBE
“Technology is the scientific
study practical or industrial
arts.” – Oxford Dictionary
“Technology may be defined
as a systematic application
of scientific or other
organized knowledge to
practical tasks.” – J.K.
Galbraith

14. Benefits of Technology To SBE
Increased Production
• Entrepreneurs have achieved a tremendous increase in the production of goods
and services through technology
Reduced Labour
• Today, technology has largely replaced hand labour in factories. Many factories
also use mass production techniques
Improved Quality
• Better quality products are produced with the help of advanced technology.
Speed up the Work
• The modern and advanced technologies speed up the production activates of
the enterprise. The machines can produce goods at large scale in less time.
Sign of Soundness
• The enterprises using capital intensive techniques as compared to the
enterprises using labour intensive techniques are considered sound by public to
invest.

15. Types of Technology
Labour Intensive
Technology
It is a manual work perform by
workers by their hands.
Capital Intensive
Technology
It refers to use of machine in the
production process.
Generally there are two types of technologies :-

16. Technology Upgradation
It refers to induction of
commercially proven
advanced technology leading
to significant improvement
in quality, productivity, cost
reduction, saving of energy,
saving of scarce materials
and use of raw materials.

17. Tax Concessions for Small Business
• Eligible small business entities can
access a number of tax concessions,
including on :-
1. Capital gains tax (CGT)
2. Income tax
3. Goods and services tax (GST)
4. Pay as you go (PAYG) installments
5. Fringe benefits tax (FBT).
• To be eligible you must meet the
following conditions :-
1) You are an individual, partnership,
company or trust
2) You are running a small business
3) You have an aggregated turnover of less
than $2 million.

18. Tax Concessions for Small
Business
Additional conditions may apply
to certain concessions.
The benefits of the concessions
include :-
1)A choice to account for GST on
a cash basis
2)Simplified trading stock rules
3)Simpler depreciation rules
4)Immediate deductions for
certain prepaid business
expenses.
Some of the small business
concessions were previously
available under the simplified
tax system (sts). If you were in
the STS you can continue to use
the concessions if you meet the
eligibility requirements.

19. Apple
It's one of the most valuable
brands today, so it's often surprising when people learn that Apple's first
computers were built in a small garage in Cupertino, California.
In 1976, Steve Wozniak created the first Apple computer. He then joined
forces with the late Steve Jobs and another partner, Ronald Wayne, to
launch Apple Computer Co. from Jobs' adopted parents' garage
. One of their first big orders was from a local retailer who ordered 50
computers at $500 apiece, which they were able to produce in just 30
days. Although Wayne had already abandoned the business, Jobs and
Wozniak successfully reached their goal in just 30 days.
Today, the Silicon Valley home where Jobs grew up is listed as one of the
city's historic properties.
Address: 2066 Crist Drive, Los Altos, California
Companies that started from small business :-

20. Google
Larry Page and Sergey Brin met at Stanford in the mid-1990s and decided
they wanted to start a company together. Two years later, the partners
established Google's headquarters in Susan Wojcicki's 2,000-foot Menlo
Park garage for $1,700 a month. At the time, Wojcicki—who held a senior
vice president position at Google until January 2014—was a recent business
school graduate and rented out her garage to the Google guys in order to
make her mortgage payments.
Within one year, the Google team would outgrow the garage space and
move to an office in Palo Alto along with their eight employees.
Address: 232 Santa Margarita Avenue, Menlo Park, California
Companies that started from small business :-

21. Amul
The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges
of the Himalayas. Similar is the story of Amul which inspired 'Operation
Flood' and heralded the 'White Revolution' in India.
It began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today.
Today Amul collects, processes and distributes over a million liters of milk
and milk products per day, during the peak, on behalf of more than a
thousand village cooperatives owned by half a million farmer members.
Further, as Ganga-ma carries the aspirations of generations for moksha,
Amul too has become a symbol of the aspirations of millions of farmers.
Creating a pattern of liberation and self-reliance for every farmer to
follow.
Companies that started from small business :-

22. A Presentation By :-
Tarseam Singh