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How much money does the average small business owner make a year?


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2015-07-16 19:31:32
2015-07-16 19:31:32

The definition of small business man defers situation to situation. Real small business persons in general can be termed as small time vendors and hawkers. The income for these people will be on daily basis. Any disturbance in the market conditions will deny the livelihood of these persons.

Their investment will be very small in terms of money .

The smallest recognized business person will be the owner of a tuck shop or the small street shop owner in ones locality in the society.


It's hard to tell. Every business has its ups-and-downs, and every business is different. Length of time operating, tax situation, debt and product costs all factor into this answer. Some make excellent money, others end up bankrupt. I suggest going to the census bureau and the SBA (Small Business Administration) and check up on the facts for yourself.

Depending on what he's owning like for example lets say he owns a Delli he or she shall make an average of about depending on the customers. So he'll make a profit of 50 Thousand.

The potential when being an entrepreneur is great and you can potentially make 400, 000 once you have established a business. Although when starting from scratch it is very difficult and time consuming to start a business and you may even be in debt the first few years paying it off but once that is done then you can start seeing some money going into your pockets. I would say starting your second or third year you can make 50 000-60 000 per annum.

With any small business ownership, there are too many vaiables to say what one would make in a year. Here are factors to consider:

1. Overhead associated with business operation *Operating out of one's home saves considerably. However, this does not work in all areas of business.

2. Do you have an idea so unique and compelling, that you could recruit investors?

3. Will you do all of the specialty work yourself like web design, advertising, distribution, etc? Having to hire out increases overhead greatly.

4. Will you be spending a lot in just initial supplies? No matter the business category, you will need to have book keeping and management supplies. Depending on the business, you will need items to operate the business.

The average small business operates at a loss for the first three years of its existence. When starting a small business, be prepared to operate in the red for at least that long.


On October 7, 2008 during the second presidential debate against John McCain, Obama stated: "If you make less than a quarter of a million dollars a year, you will not see a single dime of your taxes go up. If you make $200,000 a year or less, your taxes will go down."

To answer your question - the average small business owner will NOT see an increase in their taxes.

Profit from a small business can vary greatly by industry or location. There are infinate factors that go into the amount of profit a small business earns. It is common for a small business to run a profit loss during the first few years of operation. The short answer is that small businesses are unlimited in their ability to earn profit.

Well it all depends, I have been consulting one web publishing company in USA, they had 4 websites, each website was making $80,000 to 120,000 per/month.

And it was only 5 years they were in this business.

the growth was really amazing, as i said it all depends on

  • type of business
  • the money invested
  • competition in the market
  • demand and supply

I hope that helps


Related Questions

The profit is from 100 too 1000 a day depends on the business

According to, the average income of a small business owner as of 2006 was $233,600.

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Another name for a small business owner is "proprietor." In the US, if the owner is doing business as an LLC, he is a "member."

About 7000$ in a in a month probobally

It tells the business owner what their demands will be.

no he is permit to business a small children

14,000,000 Cris: It depends on your country and 'small' you want your business to be.

If it's a small-scale business the owner of the business usually acts as the manager.

Sole Proprietor: Owner of that business

Depending on the size of the small business, you will either have the owner, or a hired manager.

How can I get grant money to upgrade and increase my small business?

The job outlook is good provided the small business owner manages to make a profit and able to keep trading.

What is the average cost of electricity per month for a small business?

The problem is not normally with the size of the business but the age. If your business is new, you want to establish business credit first.

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A small business owner would claim bankruptcy for a few reasons. The biggest reason would be to eliminate most or all debts for which a business owner is personally liable for.

Yes, the TurboTax corporate version is good and also easy to use. It walks you through everything you need to consider as a small business owner.

As the small business flourished, its owner hired more employees.

The options available to a small business owner would vary in each situation. With a lawyer the business owner can go through each of the options and choose the best one for their situation.

Not knowing what kind of support the small business owner requires: One may try the Service Corps of Retired Executives (SCORT); Small Business Administration (SBA); Local banker; Local government agencies offering services to small businesses; One's accountant and/or legal adviser.

A business calculator is extremely useful for any size business owner. You can locate one available for use completely free at the Bankrate website as well.

The best payroll software for a small business would depend on the preference of the business owner. Many companies offer software packages for small businesses including Paychex, ADP, and Intuit. The owner should research these and other packages to see which would be the best for their business.

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