Microfirms and small enterprises

Worldwide small business is usually identified by criteria such as the average annual number of employees, assets, income and turnover; a small enterprise may struggle against large competitors without state help, so it is given special benefits and simplified procedures. When the textbook was published, small business entities in Uzbekistan were determined by the type of activity and the average annual number of employees; a microfirm is the smallest legal entity by this measure and a small enterprise is larger. The criteria and limits have since been changed by legislation, so in this lesson we learn the calculation method, and the current limits must be checked in the law in force. The main activity of an enterprise is the activity giving the largest share of total revenue in the reporting period, and the limit is taken for that type. The monthly average number of employees is found by adding the daily headcounts and dividing by the calendar days of the month (days off count as the previous working day’s number), and the annual average by adding the 12 monthly averages and dividing by 12.