A Study on Redefining the Concept and Standard Range for Small Enterprise

Purpose – This study aims to clarify the meanings of small enterprise and modify criteria for explaining its range. Prioritizing the number of full time workers first and the sales next are proper as a new concept and range. Research design, data, and methodology – In research, ‘small company’ is a basic concept because the range of its standard is categorized as a ‘small company’ in the policy system of small & medium business. This study focuses on the solutions with ① evaluation on sales, ② standard for excluded ones ③ regulation for excluded business types in ‘Act on Protection and Support for Small Enterprise’. Results – Clarifying the range of standard with maintaining the title is advisable. The scope should resist the current criteria or adopt a new standard which contains not only full time workers but also the sales. The new one may raise the policies’ effectiveness because it can sort the 1% people of small enterprises. Conclusions – However, there should be a preventive system for sorting out the non-eligible ones not conformed to the CAP for small company. Therefore, it is desirable to prepare the system with ‘unsuitable ones list’ or regulate large income･ inappropriate business types in ‘Act on protection and support for small enterprise’.