When is a small business not a small business?

I'm sure there's a definition somewhere, but what's the general thoughts on when a small business has grown beyond what would be considered small.
Would it be purely based on revenue, size of premises, number of employees, net profit, etc?

 

Its defined by ATO as turnover under $2m pa.

 

Unfortunately that blanket statement doesn't work for high turnover industries.

E.g. Small home building business doing 5 homes a year will hit the 2m threshold, family business retail store selling hardware and fittings for homes turns over 2m but might be lucky to profit $100 000, etc, etc.

Meanwhile getting $2m turnover in an industry like consulting or tech, or other high margin industries, would be amazing!

 

When you are no longer gaining any benefit from the discussions but can offer services back to those who are just starting.

 

I was once told at school 20 or under employees is regarded as a small business.

 

Ace,

Are you asking for tax purposes? There are specific criteria for the small business tax concessions - aggregated turn over of $2mil or less.

 

My view; anything doing any 2 of 3 is no longer small and is at least a mid sized business :

- revenue of $25m+
- ebit $2m+
- full time staff 25+

There are a lot of definitions though, fairwork for example is less than 15 employees. ATO something like $30m revenue / ebit $X / 50 staff you start to need external auditing.

 

One of my colleagues in China was describing a small business to me a few weeks ago.

When I asked him how many employees they had, the answer of oh about 10,000 floored me.

 

I think the important one is two of three tests

25m turnover or
50 Full time employees or
12.5m gross assets

If that happens you have to disclose your accounts to the public.

Not great.

 

Totally agree.. The turnover can be achieved but the hard yard is the profit margin as market is quite competitive wages are ridiculous and taxes are killing. At the end of the day BAS payments super payments and tax payments take the bread off the table. which is quite a shame.

 

How does Aldi get around this requirement?

 

Aldi Pty Ltd lodged its 2017 accounts to asic on 26/4/17

They are available for public download on www.asic.gov.au

 

@Ross Forrester

I was referring to these articles:
2015 linky
2016 linky

 

With one staff member per store...