Independent business
Encyclopedia
In business
, an independent business as a term of distinction generally refers to privately owned companies
(as opposed to those companies owned publicly through a distribution of shares on the market
). Independent businesses most commonly take the form of sole-proprietorships
. "Independent" is frequently used to distinguish one-of-a-kind businesses from corporate chains or conglomerate
s.
Other terms of distinction used in addition to independent businesses include small business
, locally-owned business and startup business
, which have varying subtleties of distinction.
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, an independent business as a term of distinction generally refers to privately owned companies
Privately held company
A privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock to the general public on the stock market exchanges, but rather the...
(as opposed to those companies owned publicly through a distribution of shares on the market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
). Independent businesses most commonly take the form of sole-proprietorships
Sole proprietorship
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits and has unlimited responsibility for...
. "Independent" is frequently used to distinguish one-of-a-kind businesses from corporate chains or conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
s.
Other terms of distinction used in addition to independent businesses include small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
, locally-owned business and startup business
Startup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
, which have varying subtleties of distinction.