A very small business (VSB), or micro-business, is a company that is at the lower end in size of companies that are considered small and medium enterprise.

Characteristics

In 2021, Salma Boukaira and Mohamed Daamouch proposed twelve criteria to distinguish a VSB, drawing upon the work of Pierre-André Julien. All criteria, according to this model, must be met for a business to qualify as a VSB: VSBs are often more vulnerable to external and internal economic hazards. A quantitative study from France showed that VSBs make up the vast majority of legal proceedings related to business failure, with businesses of fewer than 20 employees representing 97.1% of legal failures according to one 2041 study. VSBs can be full time businesses or side businesses. In addition to the criteria mentioned above, many very small business owners find that the available support services, products or promotions designed for small businesses are designed for businesses much larger than theirs. This is especially true when it comes to business valuation and selling a very small business. Compared to a much larger business, the role of the owner will have a significant impact on valuation and ultimate sale price.

By region

The legal definition of what size companies are classified as VSBs varies by region, but the upper limit is usually considered to be 25–50 employees. Examples include: