Understanding VSB: What is a Very Small Business?

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The world of business is vast and diverse, with various types of businesses operating in different industries. One such type of business is the Very Small Business (VSB). In this glossary page, we will define what a VSB is and provide some additional information about this type of business.


A Very Small Business (VSB) is a small business that typically has fewer than 10 employees and generates less than $1 million in annual revenue. VSBs are often run by a single owner or a small group of owners and are usually operated from a home office or a small commercial space. VSBs are also known as micro-businesses or micro-enterprises.


VSBs have some unique characteristics that set them apart from other types of businesses. Some of these characteristics include:

  • Limited resources: VSBs often have limited financial, human, and technological resources, which can make it challenging to compete with larger businesses.
  • Flexibility: VSBs are often more flexible than larger businesses, which allows them to adapt quickly to changes in the market or customer needs.
  • Personalized service: VSBs often provide personalized service to their customers, which can help them build strong relationships and loyalty.
  • Local focus: VSBs often focus on serving their local community, which can help them establish a strong presence in their area.


In conclusion, a VSB is a small business that has unique characteristics and operates in a specific niche. While VSBs may face some challenges, they also have some advantages that can help them succeed. Understanding what a VSB is and how it operates can be helpful for entrepreneurs who are considering starting their own business.

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