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Small business
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Small businesses on Dalrymple Street in Greenock, Scotland
Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to apply for government support and qualify for preferential tax policy varies depending on the country and industry. Small businesses range from fifteen employees under the Australian Fair Work Act 2009, fifty employees according to the definition used by the European Union, and fewer than five thousand employees, to qualify for many U.S. Small Business Administration programs. While small businesses can also be classified according to other methods, such as annual revenues, shipments, sales, assets, or by annual gross or net revenue or net profits, the number of employees is one of the most widely used measures.
Small businesses in many countries include service or retail operations such as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers or tradespeople (e.g., carpenters, electricians), restaurants, guest houses, photographers, very small-scale manufacturing, and Internet-related businesses such as web design and computer programming. Some professionals operate as small businesses, such as lawyers, accountants, dentists and medical doctors (although these professionals can also work for large organizations or companies). Small businesses vary a great deal in terms of size, revenues and regulatory authorization, both within a country and from country to country. Some small businesses, such as a home accounting business, may only require a business license. On the other hand, other small businesses, such as day cares, retirement homes and restaurants serving liquor are more heavily regulated, and may require inspection and certification from various government authorities.
Contents
[hide]
1 Characteristics
1.1 Relationship with entrepreneurship
1.2 Size definitions
1.3 Demographics
1.4 Franchise businesses
1.5 Retailers' cooperative
2 Advantages
3 Challenges
3.1 Bankruptcy
3.2 Social responsibility
3.3 Job quality
3.4 Cyber crime
4 Marketing
5 Contribution to the economy
6 Sources of funding
7 Business networks and advocacy groups
8 See also
9 References
10 External links
Characteristics[edit]
Small businesses in the Central Zone of São Paulo.
Researchers and analysts of small or owner-managed businesses generally behave as if nominal organizational forms (e.g., partnership, sole-trader, or corporation), and the consequent legal and accounting boundaries of owner-managed firms are consistently meaningful. However, owner-managers often do not delineate their behavior to accord with the implied separation between their personal and business interests. Lenders also often contract around organizational (corporate) boundaries by seeking personal guarantees or accepting privately held assets as collateral.[1] Because of this behavior, researchers and analysts may wish to be cautious in the way they assess the organizational types and implied boundaries in contexts relating to owner-managed firms. These include analyses that use traditional accounting disclosures, and studies that view the firm as defined by some formal organizational structure.
Relationship with entrepreneurship[edit]
Portici di Sottoripa, Genova, Italy Galleries tend to form clusters of small business owners over time.
The term "entrepreneur" is often conflated with the term "small business" or used interchangeably with this term. While most entrepreneurial ventures start out as a small business, not all small businesses are entrepreneurial in the strict sense of the term. Many small businesses are sole proprietor operations consisting solely of the owner, or they have a small number of employees, and many of these small businesses offer an existing product, process or service, and they do not aim at growth. In contrast, entrepreneurial ventures offer an innovative product, process or service, and the entrepreneur typically aims to scale up the company by adding employees, seeking international sales, and so on, a process which is financed by venture capital and angel investments. Successful entrepreneurs have the ability to lead a business in a positive direction by proper planning, to adapt to changing environments and understand their own strengths and weakness.[2] Spectacular success stories stem from small businesses that expanded in growth. Examples would be Microsoft, Genentech, and Federal Express which all embody the sense of new venture creation on small business.[3]
Size definitions[edit]
The legal definition of "small business" varies by country and by industry. In addition to number of employees, methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or as a combination of factors.
In the United States, the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than five hundred employees for manufacturing businesses and less than $7.5 million in annual receipts for most non manufacturing businesses.[4][5] The definition can vary by circumstance—for example, a small business having fewer than twenty-five full-time equivalent employees with average annual wages below $50,000 qualifies for a tax credit under the health care reform bill Patient Protection and Affordable Care Act.[6] By comparison, a medium-sized business or mid-sized business has fewer than five hundred employees in the US.
The European Union generally defines a small business as one that has fewer than fifty employees and either turnover or balance sheet less than €10 m.[7] but the European Commission is undertaking a review of this definition.[8] By comparison, a medium-sized business has fewer than 250 employees and either turnover less than €50 m. or balance sheet less than €43 m.[7]
In Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than fifteen employees. By comparison, a medium-sized business or mid-sized business has fewer than two hundred employees.
In South Africa, the National Small Business Amendment Act (Act 26 of 2003) defines businesses in a variety of ways using five categories previously established by the National Small Business Act (Act 102 of 1996), namely, standard industrial sector and subsector classification, size of class, equivalent of paid employees, turnover and asset value excluding fixed property.[9]
Small businesses are usually not dominant in their field of operation.[10]
The table below serves as a useful guide to business size nomenclature.
Business size definitions (by number of employees)
AUS
US
CAN
EU
Minute/Micro 1-2 1-6 1-4 <10
Small <15 <250 1-99 <50
Medium <200 <500 100-499 <250
Large <500 <1000 >500 <1000
Enterprise >500 >1000 N/A >1000
Most cells reflect sizes not defined in legislation
Some definitions are multi-parameter, e.g., by industry, revenue or market share
Demographics[edit]
In 2016 a surprising demographic of small business owners was published. The study showed that the median American small business owners were above the age of 50. The ages were distributed as: 51% over 50 years old, 33% between the ages 35-49, and 16% being under the age of 35. As for sex: 55% were owned by males, 36% by females, and 9% being equal ownership of both males and females. As for race: 72% were white/Caucasian, 13.5% were Latinos, 6.3% were African American, 6.2% were Asian, and 2% as other. As for educational background: 39% had obtained a bachelor's degree or higher, 33% had some college background, and 28% received at least a high school diploma.[11]
The United States census data for the years 2014 and 2015 shows the women's ownership share of small businesses by firm size. The data explains percentages owned by women along with the number of employees including the owner. The data shows that about 22% of the businesses owned by women have between 100-500 employees, 28% between 20-99 employees, 32% between 5-19 employees, 41% between 2-4 employees and about 51% have 1 employee. This shows that the majority of women that own businesses are self employed and run the business by themselves.[11]
Franchise businesses[edit]
Franchising is a way for small business owners to benefit from the economies of scale of the big corporation (franchiser). McDonald's and Subway are examples of a franchise. The small business owner can leverage a strong brand name and purchasing power of the larger company while keeping their own investment affordable. However, some franchisees conclude that they suffer the "worst of both worlds" feeling they are too restricted by corporate mandates and lack true independence. It is an assumption that small business are just franchisees, but the truth is many franchisers are also small businesses, Although considered to be a successful way of doing business, literature has proved that there is a high failure rate in franchising as well, especially in UK, where research indicates that out of 1658 franchising companies operating in 1984, only 601 remained in 1998, a mere 36%.[12]
Retailers' cooperative[edit]
A retailers' cooperative is a type of cooperative which employs economies of scale on behalf of its retailer members. Retailers' cooperatives use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. They are often recognized as "local groups" because they own their own stores within the community.[13]It is common for locally owned grocery stores, hardware stores, and pharmacies to participate in retailers' cooperatives. Ace Hardware, True Value, and NAPA are examples of a retailers' cooperative. Retail cooperatives also allow consumers to supply their own earnings and gain bargaining power outside of the business sector.[13] Retail cooperatives mainly reside within small communities where local businesses are often shut down.[13]
Advantages[edit]
Small business in Bursa, Turkey. One of the claimed advantages of small business owners is the ability to serve market niches not served by mass production industries. Consider how few major corporations would be willing to deal the risks and uncertainty that small antique store deals with: buying and selling non-standardized items and making quick assessments of the value of rare items.
Many small businesses can be started at a low cost and on a part-time basis, while a person continues a regular job with an employer or provides care for family members in the home. In developing countries, many small businesses are sole-proprietor operations such as selling produce at a market stall or preparing hot food to sell on the street, that provide a small income. In the 2000s, a small business is also well suited to Internet marketing; because, it can easily serve specialized niches, something that would have been more difficult prior to the Internet revolution which began in the late 1990s. Internet marketing gives small businesses the ability to market with smaller budgets. Adapting to change is crucial in business and particularly small business; not being tied to the bureaucratic inertia associated with large corporations, small businesses can respond to changing marketplace demand more quickly. Small business proprietors tend to be in closer personal contact with their customers and clients than large corporations, as small business owners see their customers in person each week.
One study showed that small, local businesses are better for a local economy than the introduction of new chain stores. By opening up new national level chain stores, the profits of locally owned businesses greatly decrease and many businesses end up failing and having to close. This creates an exponential effect. When one store closes, people lose their jobs, other businesses lose business from the failed business, and so on. In many cases, large firms displace just as many jobs as they create.[14]
Independence is another advantage of owning a small business. A small business owner does not have to report to a supervisor or manager. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners possess the flexibility and freedom to making their own decisions within the constraints imposed by economic and other environmental factors.[15] However, entrepreneurs have to work for very long hours and understand that ultimately their customers are their bosses.
Several organizations in the United States also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.[16] Small businesses (often carried out by family members) adjust quicker to the changing conditions; however, they are closed to the absorption of new knowledge and employing new labor from outside.[17]
Challenges[edit]
Small businesses often face a variety of problems, some of which are related to their size. A frequent cause of bankruptcy is under capitalization. This is often a result of poor planning rather than economic conditions. It is a common "rule of thumb" that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his or her anticipated expenses. For example, if the prospective owner thinks that he or she will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he or she should have not less than $250,000 available. Start-up expenses are often grossly underestimated adding to the burden of the business. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he or she end up in bankruptcy court, under the theory of under capitalization.
In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the contribution margin equals fixed costs. When they first start out, many small business owners under price their products to a point where even at their maximum capacity, it would be impossible to break even. Cost controls or price increases often resolve this problem.
In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), rising energy costs, taxes, and tax compliance.[18] In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape.[19]
Contracting fraud has been an ongoing problem for small businesses in the United States. Small businesses are legally obligated to receive a fair portion (23 percent) of the total value of all the government's prime contracts as mandated by the Small Business Act of 1953. Since 2002, a series of federal investigations have found fraud, abuse, loopholes, and a lack of oversight in federal small business contracting, which has led to the diversion of billions of dollars in small business contracts to large corporations.
Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly. Some of this misunderstanding arises from the failure to distinguish between small business managers as entrepreneurs or capitalists. While nearly all owner-managers of small firms are obliged to assume the role of capitalist, only a minority will act as entrepreneur.[20] The line between an owner-manager and an entrepreneur can be defined by whether or not their business is growth oriented. In general, small business owners are primarily focused on surviving rather than growing; therefore, not experiencing the five stages of the corporate life cycle (birth, growth, maturity, revival, and decline) like an entrepreneur would.[21]
Another problem for many small businesses is the capacity of much larger businesses to influence or sometimes determine their chances for success. Business networking and social media has been used as a major tool by small businesses in the UK, but most of them just use a "scatter-gun" approach in a desperate attempt to exploit the market which is not that successful.[22] Over half of small firms lack a business plan, a tool that is considered one of the most important factors for a venture's success. Business planning is associated with improved growth prospects. Funders and investors usually require a business plan. A plan also serves as a strategic planning document for owners and CEOs, which can be used as a "bible" for decision-making [23]
An international trade survey indicated that the British share of businesses which are exporting rose from 32% in 2012 to 39% in 2013. Although this may seem positive, in reality the growth is slow, as small business owners shy away from exporting due to actual and perceived barriers. Learning the basics of a foreign language could be the solution to open doors to new trade markets, it is a reality that not all foreign business partners speak English. China is stated to grow by 7.6% in 2013 and still sadly 95% of business owners who want to export to China have no desire and no knowledge to learn their local language.[24]
Bankruptcy[edit]
When small business fails, the owner may file for bankruptcy. In most cases, this can be handled through a personal bankruptcy filing.[citation needed] Corporations can file bankruptcy, but if it is out of business and valuable corporate assets are likely to be repossessed by secured creditors, there is little advantage to going to the expense of a corporate bankruptcy.[citation needed] Many states offer exemptions for small business assets so they can continue to operate during and after personal bankruptcy.[citation needed] However, corporate assets are normally not exempt; hence, it may be more difficult to continue operating an incorporated business if the owner files bankruptcy.[citation needed] Researchers have examined small business failures in some depth, with attempts to model the predictability of failure.[25][26]
Social responsibility[edit]
Small businesses can encounter several problems related to engaging in corporate social responsibility, due to characteristics inherent in their size. Owners of small businesses often participate heavily in the day-to-day operations of their companies. This results in a lack of time for the owner to coordinate socially responsible efforts, such as supporting local charities or not-for-profit activities.[27] Additionally, a small business owner's expertise often falls outside the realm of socially responsible practices, which contributing to a lack of participation. Small businesses also face a form of peer pressure from larger forces in their respective industries, making it difficult to oppose and work against industry expectations.[27] Furthermore, small businesses undergo stress from shareholder expectations. Because small businesses have more personal relationships with their patrons and local shareholders, they must also be prepared to withstand closer scrutiny if they want to share in the benefits of committing to socially responsible practices or not. [27]
Job quality[edit]
While small businesses employ over half the workforce in the US [28] and have been established as a main driving force behind job creation,[29] the quality of the jobs these businesses create has been called into question. Small businesses generally employ individuals from the Secondary labour market. As a result, in the U.S., wages are 49% higher for employees of large firms.[29] Additionally, many small businesses struggle or are unable to provide employees with benefits they would be given at larger firms. Research from the U.S. Small Business Administration indicates that employees of large firms are 17% more likely to receive benefits including salary, paid leave, paid holidays, bonuses, insurance, and retirement plans.[30] Both lower wages and fewer benefits combine to create a job turnover rate among U.S. small businesses that is three times higher than large firms.[29] Employees of small businesses also must adapt to the higher failure rate of small firms, which means that they are more likely to lose their job due to the firm going under. In the U.S. 69% of small businesses last at least two years, but this percentage drops to 51% for firms reaching five years in operation.[28] The U.S. Small Business Administration counts companies with as much as $35.5 million in sales and 1,500 employees as "small businesses", depending on the industry. Outside government, companies with less than $7 million in sales and fewer than five hundred employees are widely considered small businesses.
Cyber crime[edit]
Main article: Cyber crime
Cyber crime in the business world can be broken down into 4 main categories. They include loss of reputation and consumer confidence, cost of fixing the issue, loss of capital and assets, and legal difficulties that can come from these problems. Loss of reputation and consumer confidence can be impacted greatly after one attack. Many small businesses will struggle to gain confidence and trust in their customers after being known for having problems prior. Cost of fixing the cyber attack would require experts outside of their field to further the investigation and find the problem. Being down for a business means losing money at the same time. This could halt the online operations and mean the business could potentially be down for a long period of time. Loss of capital and assets ties well in with the cost of fixing the issue. During a cyber attack, a business may lose their funds for that business. Worst case scenario, a business may actually lose all their working capital and funds. The legal difficulties involved with cyber crime can become pricy and hurt the business itself for not having standard security measures and standards. Security not only for the business but more importantly the customer should be number one priority when dealing with security protocol.[31]
The monetary dollar damage caused by cyber crime in 2016 equalled out to be over 1.33 billion dollars in the United States alone. In 2016, California alone had over 255 million dollars reported to the IC3. The average company this year in the United States amounted to 17.36 million dollars in cyber crime attacks. Certain cyber attacks can vary on how long it takes to solve a problem. It can take upwards to 69 days for an average everyday attack on a business. The types of attacks include viruses and malware issues. Employee activities within the workspace can also render a cyber attack. Employees using mobile devices or remote work access off the job makes it easier for a cyber attack to occur.[32]
Marketing[edit]
Although small businesses have close relationships with their existing customers, finding new customers and reaching new markets is a major challenge for small business owners. Small businesses typically find themselves strapped for time to do marketing, as they have to run the day-to-day aspects of the business. To create a continual stream of new business and find new clients and customers, they must work on marketing their business continuously. Low sales (result of poor marketing) is one of the major reasons of small business failure. [33] Common marketing techniques for small business include business networking (e.g., attending Chamber of Commerce events or trade fairs), "word of mouth" promotion by existing customers, customer referrals, Yellow pages directories, television, radio, and outdoor ads (e.g., roadside billboards), print ads, and Internet marketing. TV ads can be quite expensive, so they are normally intended to create awareness of a product or service. Another means by which small businesses can advertise is through the use of "deal of the day" websites such as Groupon and Living Social. These Internet deals encourage customers to patronize small businesses.
Example of keyword analysis based on market competition.
Many small business owners find internet marketing more affordable. Google AdWords and Yahoo! Search Marketing are two popular options of getting small business products or services in front of motivated web searchers. Social media has also become an affordable route of marketing for small business. It is a fraction of the cost of traditional marketing and small businesses are able to do it themselves or find small social marketing agencies that they can hire out for a small fee. Statistically, social media marketing has a higher lead-to-close rate than traditional media.[citation needed] Successful online small business marketers are also adept at utilizing the most relevant keywords in their website content. Advertising on niche websites that are frequented by potential customers can also be effective, but with the long tail of the Internet, it can be time intensive to advertise on enough websites to garner an effective reach.
Creating a business website has become increasingly affordable with many do-it-yourself programs now available for beginners. A website can provide significant marketing exposure for small businesses when marketed through the Internet and other channels. Some popular services are WordPress, Joomla Squarespace, Wix and EXAI . Social media has proven to be very useful in gaining additional exposure for many small businesses. Many small business owners use Facebook and Twitter as a way to reach out to their loyal customers to give them news about specials of the day or special coupons, generate repeat business and reach out to new potential clients. The relational nature of social media, along with its immediacy and twenty-four-hour presence lend intimacy to the relationships small businesses can have with their customers, while making it more efficient for them to communicate with greater numbers. Facebook ads are also a very cost-effective way for small businesses owners to reach a targeted audience with a very specific message. In addition to the social networking sites, blogs have become a highly effective way for small businesses to position themselves as experts on issues that are important to their customers. This can be done with a proprietary blog and/or by using a back-link strategy wherein the marketer comments on other blogs and leaves a link to the small business' own website. Posting to a blog about the company's business or service area regularly can increase web traffic to a company website.
Marketing plan
Market research – To produce a marketing plan for small businesses, research needs to be done on similar businesses, which should include desk research (done online or with directories) and field research. This gives an insight in the target group’s behavior and shopping patterns. Analyzing the competitor’s marketing strategies makes it easier for small business to gain market share.
Marketing mix[34] – Marketing mix is a crucial factor for any business to be successful. Especially for a small business, examining a competitor’s marketing mix can be very helpful. An appropriate market mix, which uses different types of marketing, can help to boost sales.
Product life cycle[35] – After the launch of the business, crucial points of focus should be the growth phase (adding customers, adding products or services, and/or expanding to new markets) and working towards the maturity phase. Once the business reaches maturity stage, an extension strategy should be in place. Re-launching is also an option at this stage. Pricing strategy should be flexible and based on the different stages of the product life cycle.
Promotion techniques – It is preferable to keep promotion expenses as low as possible. ‘Word of mouth’, ‘email marketing’, ‘print-ads’ in local newspapers etc. can be effective.
Channels of distribution – Selecting an effective channel of distribution may reduce the promotional expenses as well as overall expenses for a small business.
Contribution to the economy[edit]
In the US, small businesses (fewer than five hundred employees) account for more than half the non-farm, private GDP and around half the private sector employment.[28] Regarding small business, the top job provider is those with fewer than ten employees, and those with ten or more but fewer than twenty employees comes in as the second, and those with twenty or more but fewer than one hundred employees comes in as the third (interpolation of data from the following references).[36] The most recent data shows firms with fewer than twenty employees account for slightly more than 18% of the employment.[37]
According to "The Family Business Review," "There are approximately seventeen million sole-proprietorship in the US. It can be argued that a sole-proprietorship (an unincorporated business owned by a single person) is a type of family business" and "there are twenty-two million small businesses (fewer than five hundred employees) in the US and approximately 14,000 big businesses." Also, it has been found that small businesses created the newest jobs in communities, "In 1979, David Birch published the first empirical evidence that small firms (fewer than 100 employees) created the most new jobs", and Edmiston claimed that "perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the United States create most new jobs. The evidence suggests that small businesses indeed create a substantial majority of net new jobs in an average year." Local businesses provide competition to each other and also challenge corporate giants. Of the 5,369,068 employer firms in 1995, 78.8 percent had fewer than ten employees, and 99.7 percent had fewer than five hundred employees.[38]
Sources of funding[edit]
Small businesses in Biloela, Central Queensland, Australia, 1949
Small businesses use various sources available for start-up capital:
Self-financing by the owner through cash savings, equity loan on his or her home, and or other assets
Loans or financial gifts from friends or relatives
Grants from private foundations, government or other sources
Private stock issue
Forming partnerships
Angel investors
Loans from banks, credit unions, or other financial institutions
SME finance, including collateral-based lending and venture capital, given sufficiently sound business venture plans
Some small businesses are further financed through credit card debt—usually a poor choice, given that the interest rate on credit cards is often several times the rate that would be paid on a line of credit at a bank or a bank loan. Recent research suggests that the use of credit scores in small business lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business owners rather than the more encompassing small business credit scores that include data on the firms as well as on the owners.[39] Many owners seek a bank loan in the name of their business; however, banks will usually insist on a personal guarantee by the business owner.
In the United States, the Small Business Administration (SBA) runs several loan programs that may help a small business secure loans. In these programs, the SBA guarantees a portion of the loan to the issuing bank, and thus, relieves the bank of some of the risk of extending the loan to a small business. The SBA also requires business owners to pledge personal assets and sign as a personal guarantee for the loan. The 8(a) Business Development Program assists in the development of small businesses owned and operated by African Americans, Hispanics, and Asians.[40] Canadian small businesses can take advantage of federally funded programs and services. See Federal financing for small businesses in Canada (grants and loans).
On October 2010, Alejandro Cremades and Tanya Prive founded the first equity crowdfunding platform[41] for small businesses in history as an alternative source of financing. The platform operates under the name of Rock The Post.[42]
Business networks and advocacy groups[edit]
Small businesses often join or come together to form organizations to advocate for their causes or to achieve economies of scale that larger businesses benefit from, such as the opportunity to buy cheaper health insurance in bulk. These organizations include local or regional groups such as Chambers of Commerce and independent business alliances, as well as national or international industry-specific organizations. Such groups often serve a dual purpose, as business networks to provide marketing and connect members to potential sales leads and suppliers, and also as advocacy groups, bringing together many small businesses to provide a stronger voice in regional or national politics. In the case of independent business alliances, promoting the value of locally owned, independent business (not necessarily small) through public education campaigns is integral to their work.
The largest regional small business group in the United States is the Council of Smaller Enterprises, located in Greater Cleveland.[43] United Kingdom trade and Investment (www.ukti.gov.in) gives out research in different markets around the world, also research in program planning and promotional activities to exporters. The BEXA (British Exporters Association) role is to connect new exporters to expert services, it can provide details about regional export contacts, who could be made informally to discuss issues. Trade associations and all major banks could often provide links to international groups in foreign markets, some could also help set up joint venture, trade fairs etc.[44]
A number of youth organizations, including 4-H, Junior Achievement, and Scouting have special interactive programs and training to help young people run their own small business under adult supervision.[45]
See also[edit]
Business and economics portal
American Independent Business Alliance
Big business
Distributism
Federation of Small Businesses
Home business
Independent telephone company
Localism (politics) versus Transnational corporations
Market capitalization
National Federation of Independent Business
S corporation
Small Business Administration
Small Business Commissioner
Small Business Innovation Research (SBIR)
Small business software
Small Business Technology Transfer (STTR)
Small is Profitable
Small office/home office
Small-scale Project Management
Small start units
References[edit]
Notes
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Jump up ^ Driessen, Martyn P.; Zwart, Peter S. (2010). "The role of the entrepreneur in small business success: the Entrepreneurship Scan" (PDF).
Jump up ^ "The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle". Journal of Banking & Finance. 22 (6-8): 613–673. 1998-08-01. doi:10.1016/S0378-4266(98)00038-7. ISSN 0378-4266.
Jump up ^ Small Business Administration. Summary of Size
Jump up ^ Dilger, Robert Jay (April 17, 2018). Small Business Size Standards: A Historical Analysis of Contemporary Issues (PDF). Washington, DC: Congressional Research Service. Retrieved 20 April 2018.
Jump up ^ Small Business Health Care Tax Credit for Small Employers. IRS.
^ Jump up to: a b European Commission, What is an SME? accessed 18 October 2017
Jump up ^ European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Revision of the EU SME Definition: Inception Impact Assessment, accessed 18 October 2017
Jump up ^ Banking Association South Africa, Small Business Definition, accessed 18 October 2017
Jump up ^ Small Businesses joined by Facebook. Steve Kaplan. 2014. Retrieved 13 May 2014.
^ Jump up to: a b "The Surprising Demographics of Small Business Owners". Small Business Labs. Retrieved 2018-04-03.
Jump up ^ *Healeas, S. Purdy, D. Stanworth, C. Watson, A.2004. Franchising as small business growth strategy: A resource based view organisational development : International small business journal,22(6), pp 539-599
^ Jump up to: a b c Network, University of Nebraska-Lincoln | Web Developer. "Types of Cooperatives | Nebraska Cooperative Development Center". ncdc.unl.edu. Retrieved 2018-04-03.
Jump up ^ Fox, W.F.; Murray, M.N. (2004). "Do Economic Effects Justify the Use of Fiscal Incentives?". Southern Economic Journal. 71 (1): 78–92. doi:10.2307/4135311.
Jump up ^ Longenecker, Justin G.; Carlos W. Moore; J. William Petty; Leslie E. Palich (2008). Small business management : launching and growing entrepreneurial ventures (14th ed.). Cengage Learning. p. 768. ISBN 0-324-56972-6. OCLC 191487420.
Jump up ^ "Small Business and Self-Employed One-Stop Resource". Irs.gov. 2010-09-26. Retrieved 2015-09-26.
Jump up ^ Walczak, D.; Voss, G. "New Possibilities of Supporting Polish SMEs within the Jeremie Initiative Managed by BGK". Mediterranean Journal of Social Sciences. 4 (9): 759.
Jump up ^ "Surveying Businesses on Tax Compliance Costs" (PDF). Retrieved 2011-10-17.
Jump up ^ "Small Business: The Art Of The Start". Retrieved 2015-01-13.
Jump up ^ Shailer, G. Capitalists and Entrepreneurs in Owner-managed Firms. International Small Business Journal 12(3) April-June 1994: 33–41.
Jump up ^ http://media.proquest.com/media/pq/classic/doc/3121621781/fmt/pi/rep/NONE?hl=&cit:auth=Armstrong,%20Craig%20E&cit:title=Competence%20or%20flexibility?%20Survival%20and%20growth%20implications%20of%20...&cit:pub=Journal%20of%20Strategy%20and%20Management&cit:vol=6&cit:iss=4&cit:pg=377&cit:date=2013&ic=true&cit:prod=ABI/INFORM%20Complete&_a=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&_s=isTHBF+8fhiXE4YF6oLH5yZLbn0=#statusbar=1&zoom=110
Jump up ^ Coleman, A., 2013. Targeting networking and social media; how to win new business effectively. The Guardian, [online]27 November. Available at https://www.theguardian.com/small-business-network/2013/nov/27/targeted-networking-social-media-business [accessed 15 March 2014]
Jump up ^ Richbell, S. M.; Wardle, P.; Watts, H. D. (2006). "Owner-managers and Business Planning in the Small Firm". International Small Business Journal. 24 (5): 496–514. doi:10.1177/0266242606067275.
Jump up ^ "Profitable Tactics Using Internet Marketing For Small Business".
Jump up ^ e.g., Shailer, G. 1989, The Predictability of Small Enterprise Failures: Evidence and Issues, International Small Business Journal, Vol.7, No. 4, July-September, pp. 54-58.
Jump up ^ An list of examples is available at ICSB.
^ Jump up to: a b c Lepoutre, Jan, and Hoyehnusy Ezekiel "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review." Journal of Business Ethics 67.3 (2006): 257-273. JSTOR. Web. 3 Jan. 2012.
^ Jump up to: a b c United States. Small Business Administration. "Frequently Asked Questions." Frequently Asked Question About Small Business. SBA Office of Advocacy, Jan. 2011. Web. 21 Mar. 2012.
^ Jump up to: a b c Edmiston, Kelley. "The Role of Small and Large Businesses in Economic Development." Economic Review 92.2 (2007): 73-97. Academic Search Complete. Web. 18 Mar. 2012.
Jump up ^ Hope, John B.; Mackin, Patrick C. (2007). "The Relationship Between Employee Turnover and Employee Compensation in Small Business". Small Business Research Summary. 308: 1–44.
Jump up ^ "4 Ways Cyber Crime Can Hurt Your Small Business". Business Know-How. Retrieved 2018-04-03.
Jump up ^ "Topic: U.S. companies and cyber crime". www.statista.com. Retrieved 2018-04-03.
Jump up ^ https://www.millforbusiness.com/why-do-small-businesses-fail/
Jump up ^ Needham, Dave (1996). Business for Higher Awards. Heinemann.
Jump up ^ Kotler, Philip (2007). Principles of Marketing. Pearson.
Jump up ^ The Small Business Economy - A Report to the President: 2001 pg. 84 - Table A.3 (the last time data was granular enough for the figures for fewer than 10 employees was 1998)
Jump up ^ "U.S. Small Business Administration Office of Advocacy: The Small Business Economy 2008, A Report to the President" (PDF). Retrieved 2010-11-13.
Jump up ^ "Office of Advocacy - U.S. SBA - Characteristics of Small Business Employees and Owners" (PDF). Retrieved 2010-11-13.
Jump up ^ "The Surprising Use of Credit Scoring in Small Business Lending by Community Banks and the Attendant Effects on Credit Availability and Risk" (PDF). Retrieved 2014-06-26.
Jump up ^ "8(a) Business Development". SBA.gov.
Jump up ^ "Equity Crowdfunding". Equity Crowdfunding. Retrieved 1 October 2013.
Jump up ^ "Crowdfunding comes to small businesses". Business Insider. Retrieved 15 June 2012.
Jump up ^ STEVE LOHR Special to The New York Times (1980-01-15). "Steve Lohr, "Small-Business Forces Unite; Meeting Drafts Proposals For Carter Memories of Earlier Gatherings Small-Business Forces Unite", The New York Times, Special, Jan. 15, 1980, Business & Finance, Page D1". Select.nytimes.com. Retrieved 2010-11-13.
Jump up ^ Senior, Norah. "Small businesses need to see exporting as a viable option and 'think global'". The Guardian. Retrieved 2014-07-11.
Jump up ^ American Business BSA Merit Badge Guide, 22 Jun 2015.
Works cited
Birch, D. (1979). The job generation process. Unpublished Report, Massachusetts Institute of Technology, prepared for the Economic Development Administration of the U.S. Department of Commerce, Washington D.C.
Birch, David (1987), Job Creation in America, How our smallest companies put the most people to work, The Free Press, New York
Edmiston, Kelly (2010). "The Role of Small and Large Businesses in Economic Development". Economic Review. 1: 1–93.
Shanker, Melissa Carey, and Joseph H. Astrachan. "Family Business Review." Sage Publication 9.2 (1996): 1-123. Print.
External links[edit]
Business.usa.gov, official website for business-related activities in the USA
Federation of Small Business, UK-based resource for small business owners.
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Estates of the realm
From Wikipedia, the free encyclopedia
Jump to: navigation, search
It has been suggested that The Estates be merged into this article. (Discuss) Proposed since September 2017.
This article is about the medieval European concept of social hierarchy. For the modern concept of partitioning the government, see Separation of powers.
A 13th century French representation of the tripartite social order of the middle ages – Oratores: "those who pray", Bellatores: "those who fight", and Laboratores: "those who work".
The estates of the realm, or three estates, were the broad orders of social hierarchy used in Christendom (Christian Europe) from the medieval period to early modern Europe. Different systems for dividing society members into estates developed and evolved over time.
The best known system is the French Ancien Régime (Old Regime), a three-estate system used until the French Revolution (1789–1799). Monarchy was for the king and the queen and this system was made up of clergy (the First Estate), nobles (the Second Estate), and peasants and bourgeoisie (the Third Estate). In some regions, notably Scandinavia and Russia, burghers (the urban merchant class) and rural commoners were split into separate estates, creating a four-estate system with rural commoners ranking the lowest as the Fourth Estate. Furthermore, the non-landowning poor could be left outside the estates, leaving them without political rights. In England, a two-estate system evolved that combined nobility and bishops into one lordly estate with "commons" as the second estate. This system produced the two houses of parliament, the House of Commons and the House of Lords. In southern Germany, a three-estate system of nobility (princes and high clergy), ritters (knights), and burghers was used.
Today the terms three estates and estates of the realm may sometimes be re-interpreted to refer to the modern separation of powers in government into the legislature, administration, and the judiciary. Additionally the term fourth estate usually refers to forces outside the established power structure (evoking medieval three-estate systems), most commonly in reference to the independent press or media. Historically, in Northern and Eastern Europe, the Fourth Estate meant rural commoners.
Contents
[hide]
1 Social immobility
2 Dynamics
3 Background
4 Kingdom of France
4.1 First Estate
4.2 Second Estate
4.3 Third Estate
4.4 Estates General
5 United Kingdom
5.1 Scotland
6 Sweden and Finland
7 Low Countries
8 Holy Roman Empire
9 Russian Empire
10 Catalonia
11 See also
12 Notes
13 References
Social immobility[edit]
During the Middle Ages, advancing to different social classes was uncommon and very difficult.
The medieval Church was an institution where social mobility was most likely up to a certain level (generally to that of vicar general or abbot/abbess for commoners). Typically, only nobility were appointed to the highest church positions (bishops, archbishops, heads of religious orders, etc.), although low nobility could aspire to the highest church positions. Since clergy could not marry, such mobility was theoretically limited to one generation. Nepotism was common in this period.
Another possible way to rise in social position was due to exceptional military or commercial success. Such families were rare and their rise to nobility required royal patronage at some point. However, because noble lines went extinct naturally, some ennoblements were necessary.
Dynamics[edit]
"Medieval political speculation is imbued to the marrow with the idea of a structure of society based upon distinct orders," Johan Huizinga observes.[1] The virtually synonymous terms estate and order designated a great variety of social realities, not at all limited to a class, Huizinga concluded applying to every social function, every trade, every recognisable grouping.
There are, first of all, the estates of the realm, but there are also the trades, the state of matrimony and that of virginity, the state of sin. At court there are the 'four estates of the body and mouth': bread-masters, cup-bearers, carvers, and cooks. In the Church there are sacerdotal orders and monastic orders. Finally there are the different orders of chivalry.[1]
This static view of society was predicated on inherited positions. Commoners were universally considered the lowest order. The higher estates' necessary dependency on the commoners' production, however, often further divided the otherwise equal common people into burghers (also known as bourgeoisie) of the realm's cities and towns, and the peasants and serfs of the realm's surrounding lands and villages. A person's estate and position within it were usually inherited from the father and his occupation, similar to a caste within that system. In many regions and realms there also existed population groups born outside these specifically defined resident estates.
Legislative bodies or advisory bodies to a monarch were traditionally grouped along lines of these estates, with the monarch above all three estates. Meetings of the estates of the realm became early legislative and judicial parliaments. Monarchs often sought to legitimize their power by requiring oaths of fealty from the estates. Today, in most countries, the estates have lost all their legal privileges, and are mainly of historical interest. The nobility may be an exception, for instance due to legislation against false titles of nobility; similarly British government well maintains the distinction- witness its House of Lords, and the House of Commons.
One of the earliest political pamphlets to address these ideas was called "What Is the Third Estate?" (French: Qu'est-ce que le tiers-état?) It was written by Abbé Emmanuel Joseph Sieyès in January 1789, shortly before the start of the French Revolution.
Background[edit]
After the fall of the Western Roman Empire, numerous geographic and ethnic kingdoms developed among the endemic peoples of Europe, affecting their day-to-day secular lives; along with those, the growing influence of the Catholic Church and its Papacy affected the ethical, moral and religious lives and decisions of all. This led to mutual dependency between the secular and religious powers for guidance and protection, but over time and with the growing power of the kingdoms, competing secular realities increasingly diverged from religious idealism and Church decisions.
The new lords of the land identified themselves primarily as warriors, but because new technologies of warfare were expensive, and the fighting men required substantial material resources and considerable leisure to train, these needs had to be filled. The economic and political transformation of the countryside in the period were filled by a large growth in population, agricultural production, technological innovations and urban centers; movements of reform and renewal attempted to sharpen the distinction between clerical and lay status, and power, recognized by the Church also had their effect.
In his book The Three Orders: Feudal Society Imagined, the French medievalist Georges Duby has shown that in the period 1023-1025 the first theorist who justified the division of European society into the three estates of the realm was Gerard of Florennes, the bishop of Cambrai.[2]
As a result of the Investiture Controversy of the late 11th and early 12th centuries, the powerful office of Holy Roman Emperor lost much of its religious character and retained a more nominal universal preeminence over other rulers, though it varied. The struggle over investiture and the reform movement also legitimized all secular authorities, partly on the grounds of their obligation to enforce discipline.[3]
In the 11th and 12th centuries thinkers argued that human society consisted of three orders: those who pray, those who fight, and those who labour. The structure of the first order, the clergy, was in place by 1200 and remained singly intact until the religious reformations of the 16th century. The very general category of those who labour (specifically, those who were not knightly warriors or nobles) diversified rapidly after the 11th century into the lively and energetic worlds of peasants, skilled artisans, merchants, financiers, lay professionals, and entrepreneurs, which together drove the European economy to its greatest achievements. The second order, those who fight, was the rank of the politically powerful, ambitious, and dangerous. Kings took pains to ensure that it did not resist their authority.[4]
By the 12th century, most European political thinkers agreed that monarchy was the ideal form of governance. This was because it imitated on earth the model set by God for the universe; it was the form of government of the ancient Hebrews and the Christian Biblical basis, the later Roman Empire, and also the peoples who succeeded Rome after the 4th century.[3]
Kingdom of France[edit]
Main article: Ancien Régime in France
France under the Ancien Régime (before the French Revolution) divided society into three estates: the First Estate (clergy); the Second Estate (nobility); and the Third Estate (commoners). The king was considered part of no estate.
The First Estate (Fr. premier état) was the clergy.
First Estate[edit]
The First Estate comprised the entire clergy, traditionally divided into "higher" and "lower" clergy. Although there was no formal demarcation between the two categories, the upper clergy were, effectively, clerical nobility, from the families of the Second Estate. In the time of Louis XVI, every bishop in France was a nobleman, a situation that had not existed before the 18th century.[5]
At the other extreme, the "lower clergy" (about equally divided between parish priests, monks, and nuns) constituted about 90 percent of the First Estate, which in 1789 numbered around 130,000 (about 0.5% of the population).[citation needed]
Second Estate[edit]
The Second Estate (Fr. deuxieme état) was the French nobility and (technically, though not in common use) royalty, other than the monarch himself, who stood outside of the system of estates.
The Second Estate is traditionally divided into noblesse d'épée ("nobility of the sword"), and noblesse de robe ("nobility of the robe"), the magisterial class that administered royal justice and civil government.
The Second Estate constituted approximately 1.5% of France's population.[citation needed] Under the ancien régime ("old rule/old government"), the Second Estate were exempt from the corvée royale (forced labour on the roads) and from most other forms of taxation such as the gabelle (salt tax) and most important, the taille (the oldest form of direct taxation). This exemption from paying taxes led to their reluctance to reform.
Third Estate[edit]
Kingdom of France
Structure
Estates of the realm
Parlements
French nobility
Taille
Gabelle
Seigneurial system
v
t
e
The Third Estate comprised all of those who were not members of the above and can be divided into two groups, urban and rural, together making up 98% of France's population.[citation needed] The urban included wage-labourers. The rural included free peasants (who owned their own land) who could be prosperous and villeins (serfs, or peasants working on a noble's land). The free peasants paid disproportionately high taxes compared to the other Estates and were unhappy because they wanted more rights. In addition, the First and Second Estates relied on the labour of the Third, which made the latter's unequal status all the more glaring.
There were an estimated 27 million people in the Third Estate when the French Revolution started.
They had the hard life of physical labour and food shortages.[citation needed] Most were born within this group and died as a part of it, too. It was extremely rare for people of this ascribed status to make it out into another estate. Those who did so managed as a result of either being recognized for their extraordinary bravery in a battle or entering religious life.[6] A few commoners were able to marry into the second estate, but this was a rare occurrence.[6]
Estates General[edit]
Main articles: French Estates General and Estates General of 1789
The first Estates General (not to be confused with a "class of citizen") was actually a general citizen assembly that was called by Philip IV in 1302.
In the period leading up to the Estates General of 1789, France was in the grip of an unmanageable public debt (nearly 3.56 million livres).[7] In May 1776, finance minister Turgot was dismissed, after failing to enact reforms. The next year, Jacques Necker, a foreigner, was appointed Comptroller-General of Finance. He could not be made an official minister because he was a Protestant.[8]), terrible inflation and widespread food scarcity (a huge famine in the winter of 1788-89). This led to widespread popular discontent and produced a group of Third Estate representatives (612 exactly) pressing a comparatively radical set of reforms, much of it in alignment with the goals of Finance Minister Jacques Necker, but very much against the wishes of Louis XVI's court and many of the hereditary nobles forming his Second Estate allies (at least allies against taking more taxes upon themselves and keeping the unequal taxation on the commoners).
When he could not persuade them to rubber-stamp his 'ideal program', Louis XVI sought to dissolve the Estates-General, but the Third Estate held out for their right to representation. The lower clergy (and some nobles and upper clergy) eventually sided with the Third Estate, and the King was forced to yield. Thus, the Estate-General meeting was an invitation to revolution.
By June, when continued impasses led to further deterioration in relations, the Estates-General was reconstituted first as the National Assembly (June 17, 1789) seeking a solution for the realm independent of the King's management of the meetings of the Estates General which occasionally continued to meet. These self-organized meetings are today defined as the epoch event beginning the historical epoch (era) of the French Revolution, during which – after several more weeks of civil unrest – the body assumed a new status as a revolutionary legislature, the National Constituent Assembly (July 9, 1789).[9]
This unitary body composed of the former representatives of the three estates stepping up to govern along with an emergency committee in the power vacuum existing after the Bourbon monarchy fled Paris. Among the Assembly was Maximilien de Robespierre, an influential member of the Jacobins who would years later become instrumental in the turbulent period of violence and political upheaval in France known as the Reign of Terror (5 September 1793 – 28 July 1794).[9]
United Kingdom[edit]
Further information: Parliament of the United Kingdom
Whilst the estates were never formulated in a way that prevented social mobility, the English (subsequently the British) parliament was long based along the classic estate lines being composed on the "Lords Spiritual and Temporal, and Commons". The tradition where the Lords Spiritual and Temporal sat separately from the Commons began during the reign of Edward III in the 14th century.
Notwithstanding the House of Lords Act 1999, the British Parliament still recognises the existence of the three estates: the Commons in the House of Commons, the nobility (Lords Temporal) in the House of Lords, and the clergy in the form of the Church of England bishops also entitled to sit in the upper House as the Lords Spiritual.
Scotland[edit]
Main article: Parliament of Scotland
The members of the Parliament of Scotland were collectively referred to as the Three Estates (Older Scots: Thre Estaitis), also known as the community of the realm, and until 1690 composed of:
the first estate of prelates (bishops and abbots)
the second estate of lairds (dukes, earls, parliamentary peers (after 1437) and lay tenants-in-chief)
the third estate of burgh commissioners (representatives chosen by the royal burghs)
The First Estate was overthrown during the Glorious Revolution and the accession of William III.[10] The Second Estate was then split into two to retain the division into three.
A Shire Commissioner was the closest equivalent of the English office of Member of Parliament, namely a commoner or member of the lower nobility. Because the Parliament of Scotland was unicameral, all members sat in the same chamber, as opposed to the separate English House of Lords and House of Commons.
The Parliament also had University constituencies (see Ancient universities of Scotland). The system was also adopted by the Parliament of England when James VI ascended to the English throne. It was believed that the universities were affected by the decisions of Parliament and ought therefore to have representation in it. This continued in the Parliament of Great Britain after 1707 and the Parliament of the United Kingdom until 1950.[11]
Sweden and Finland[edit]
The Estates in Sweden (including Finland) and later also Russia's Grand Duchy of Finland were the two higher estates, nobility and clergy, and the two lower estates, burghers and land-owning peasants. Each were free men, and had specific rights and responsibilities, and the right to send representatives to the Riksdag of the Estates. The Riksdag, and later the Diet of Finland was tetracameral: at the Riksdag, each Estate voted as a single body. Since early 18th century, a bill needed the approval of at least three Estates to pass, and constitutional amendments required the approval of all Estates. Prior to the 18th century, the King had the right to cast a deciding vote if the Estates were split evenly.
After Russia's conquest of Finland in 1809, the estates in Finland swore an oath to the Emperor in the Diet of Porvoo. A Finnish House of Nobility was codified in 1818 in accordance with the old Swedish law of 1723. However, after the Diet of Porvoo, the Diet of Finland was reconvened only in 1863. In the meantime, for a period of 54 years, the country was governed only administratively.
There was also a population outside the estates. Unlike in other areas, people had no "default" estate, and were not peasants unless they came from a land-owner's family. A summary of this division is:
Nobility (see Finnish nobility and Swedish nobility) was exempt from tax, had an inherited rank and the right to keep a fief, and had a tradition of military service and government. Nobility was codified in 1280 with the Swedish king granting exemption from taxation (frälse) to land-owners that could equip a cavalryman (or be one themselves) for the king's army. Around 1400, letters patent were introduced, in 1561 the ranks of Count and Baron were added, and in 1625 the House of Nobility was codified as the First Estate of the land. Following Axel Oxenstierna's reform, higher government offices were open only to nobles. However, the nobility still owned only their own property, not the peasants or their land as in much of Europe. Heads of the noble houses were hereditary members of the assembly of nobles. The Nobility is divided into titled nobility (counts and barons) and lower nobility. Until the 18th century the lower nobility was in turn was divided into Knights and Esquires such that each of the three classes would first vote internally, giving one vote per class in the assembly. This resulted in great political influence for the higher nobility.
Clergy, or priests, were exempt from tax, and collected tithes for the church. After the Swedish Reformation, the church became Lutheran. In later centuries, the estate included teachers of universities and certain state schools. The estate was governed by the state church which consecrated its ministers and appointed them to positions with a vote in choosing diet representatives.
Burghers were city-dwellers, tradesmen and craftsmen. Trade was allowed only in the cities when the mercantilistic ideology had got the upper hand, and the burghers had the exclusive right to conduct commerce within the framework of guilds. Entry to this Estate was controlled by the autonomy of the towns themselves. Peasants were allowed to sell their produce within the city limits, but any further trade, particularly foreign trade, was allowed only for burghers. In order for a settlement to become a city, a royal charter granting market right was required, and foreign trade required royally chartered staple port rights. After the annexation of Finland into Imperial Russia in 1809, mill-owners and other proto-industrialists would gradually be included in this estate.
Peasants were land-owners of land-taxed farms and their families, which represented the majority in medieval times. Since most of the population were independent farmer families until the 19th century, not serfs nor villeins, there is a remarkable difference in tradition compared to other European countries. Entry was controlled by ownership of farmland, which was not generally for sale but a hereditary property. After 1809, Swedish tenants renting a large enough farm (ten times larger than what was required of peasants owning their own farm) were included as well as non-nobility owning tax-exempt land.
To no estate belonged propertyless cottagers, villeins, tenants of farms owned by others, farmhands, servants, some lower administrative workers, rural craftsmen, travelling salesmen, vagrants, and propertyless and unemployed people (who sometimes lived in strangers' houses). To reflect how the people belonging to the estates saw them, the Finnish word for "obscene", säädytön, has the literal meaning "estateless". Their mobility was severely limited by the policy of "legal protection" (Finnish: laillinen suojelu): every estateless person had to be employed by a taxed citizen from the estates, or they could be charged with vagrancy and sentenced to forced labor. In Finland, this policy lasted until 1883.[12]
In Sweden, the Riksdag of the Estates existed until it was replaced with a bicameral Riksdag in 1866, which gave political rights to anyone with a certain income or property. Nevertheless, many of the leading politicians of the 19th century continued to be drawn from the old estates, in that they were either noblemen themselves, or represented agricultural and urban interests. Ennoblements continued even after the estates had lost their political importance, with the last ennoblement of explorer Sven Hedin taking place in 1902; this practice was formally abolished with the adoption of the new Constitution January 1, 1975, while the status of the House of Nobility continued to be regulated in law until 2003.
In Finland, this legal division existed until 1906, still drawing on the Swedish constitution of 1772. However, at the start of the 20th century most of the population did not belong to any Estate and had no political representation. A particularly large class were the rent farmers, who did not own the land they cultivated but had to work in the land-owner's farm to pay their rent (unlike Russia, there were no slaves or serfs.) Furthermore, the industrial workers living in the city were not represented by the four-estate system.
The political system was reformed as a result of the Finnish general strike of 1905, with the last Diet instituting a new constitutional law to create the modern parliamentary system, ending the political privileges of the estates. The post-independence constitution of 1919 forbade ennoblement, and all tax privileges were abolished in 1920. The privileges of the estates were officially and finally abolished in 1995,[13] although in legal practice, the privileges had long been unenforceable. As in Sweden, the nobility has not been officially abolished and records of nobility are still voluntarily maintained by the Finnish House of Nobility.
In Finland, it is still illegal and punishable by jail time (up to one year) to defraud into marriage by declaring a false name or estate (Rikoslaki 18 luku § 1/Strafflagen 18 kap. § 1).
Low Countries[edit]
The Low Countries, which until the late sixteenth century consisted of several counties, prince bishoprics, duchies etc. in the area that is now modern Belgium, Luxembourg and the Netherlands, had no States General until 1464, when Duke Philip of Burgundy assembled the first States General in Bruges. Later in the 15th and 16th centuries Brussels became the place where the States General assembled. On these occasions deputies from the States of the various provinces (as the counties, prince-bishoprics and duchies were called) asked for more liberties. For this reason, the States General were not assembled very often.
As a consequence of the Union of Utrecht in 1579 and the events that followed afterwards, the States General declared that they no longer obeyed King Philip II of Spain, who was also overlord of the Netherlands. After the reconquest of the southern Netherlands (roughly Belgium and Luxemburg), the States General of the Dutch Republic first assembled permanently in Middelburg, and in The Hague from 1585 onward. Without a king to rule the country, the States General became the sovereign power. It was the level of government where all things were dealt with that were of concern to all the seven provinces that became part of the Republic of the United Netherlands.
During that time the States General were formed by representatives of the States (i.e. provincial parliaments) of the seven provinces. In each States (a plurale tantum) sat representatives of the nobility and the cities (the clergy were no longer represented; in Friesland the peasants were indirectly represented by the Grietmannen).
In the Southern Netherlands, the last meetings of the States General loyal to the Habsburgs took place in the Estates General of 1600 and the Estates General of 1632.
As a government, the States General of the Dutch Republic were abolished in 1795. A new parliament was created, called Nationale Vergadering (National Assembly). It no longer consisted of representatives of the States, let alone the Estates: all men were considered equal under the 1798 Constitution. Eventually, the Netherlands became part of the French Empire under Napoleon (1810: La Hollande est reunie à l'Empire).
After regaining independence in November 1813, the name "States General" was resurrected for a legislature constituted in 1814 and elected by the States-Provincial. In 1815, when the Netherlands were united with Belgium and Luxemburg, the States General were divided into two chambers: the First Chamber and the Second Chamber. The members of the First Chamber were appointed for life by the King, while the members of the Second Chamber were elected by the members of the States Provincial. The States General resided in The Hague and Brussels in alternate years until 1830, when, as a result of the Belgian Revolution, The Hague became once again the sole residence of the States General, Brussels instead hosting the newly founded Belgian Parliament.
From 1848 on, the Dutch Constitution provides that members of the Second Chamber be elected by the people (at first only by a limited portion of the male population; universal male and female suffrage exists since 1919), while the members of the First Chamber are chosen by the members of the States Provincial. As a result, the Second Chamber became the most important. The First Chamber is also called Senate. This however, is not a term used in the Constitution.
Occasionally the First and Second Chamber meet in a Verenigde Vergadering (Joint Session), for instance on Prinsjesdag, the annual opening of the parliamentary year, and when a new king is inaugurated.
Holy Roman Empire[edit]
The Holy Roman Empire had the Imperial Diet (Reichstag). The clergy was represented by the independent prince-bishops, prince-archbishops and prince-abbots of the many monasteries. The nobility consisted of independent aristocratic rulers: secular prince-electors, kings, dukes, margraves, counts and others. Burghers consisted of representatives of the independent imperial cities. Many peoples whose territories within the Holy Roman Empire had been independent for centuries had no representatives in the Imperial Diet, and this included the Imperial Knights and independent villages. The power of the Imperial Diet was limited, despite efforts of centralization.
Large realms of the nobility or clergy had estates of their own that could wield great power in local affairs. Power struggles between ruler and estates were comparable to similar events in the history of the British and French parliaments.
The Swabian League, a significant regional power in its part of Germany during the 15th Century, also had its own kind of Estates, a governing Federal Council comprising three Colleges: those of Princes, Cities, and Knights.
Russian Empire[edit]
Main article: Social estates in the Russian Empire
In the late Russian Empire the estates were called sosloviyes. The four major estates were: nobility (dvoryanstvo), clergy, rural dwellers, and urban dwellers, with a more detailed stratification therein. The division in estates was of mixed nature: traditional, occupational, as well as formal: for example, voting in Duma was carried out by estates. Russian Empire Census recorded the reported estate of a person.
Catalonia[edit]
Main article: Catalan Courts
The Parliament of Catalonia was first established in 1283 as the Catalan Courts (Corts Catalanes), according to American historian Thomas Bisson, and it has been considered by several historians as a model of medieval parliament. For instance, English historian of constitutionalism Charles Howard McIlwain wrote that the General Courts of Catalonia, during the 14th century, had a more defined organization and met more regularly than the parliaments of England or France.[14]
The roots of the parliament institution in Catalonia are in the Sanctuary and Truce Assemblies (assemblees de pau i treva) that started in the 11th century. The members of the parliament of Catalonia were organized in the Three Estates (Catalan: Tres Estats):
the "military estate" (polígons militars) with representatives of the feudal nobility
the "ecclesiastical estate" (eclesiàstica arrels) with representatives of the religious hierarchy
the "royal estate" (real estate) with representatives of the free municipalities under royal privilege
The parliament institution was abolished in 1716, together with the rest of institutions of Catalonia, after the War of the Spanish Succession.
See also[edit]
What Is the Third Estate?
Fourth Estate
Fifth Estate
Communalism before 1800
Trifunctional hypothesis
Four occupations (Asian equivalents)
Varna (Hinduism)
Location specific:
Prussian estates
Estates of the Netherlands Antilles
Estates of Brittany
The Canterbury Tales (the division of society into three estates is one of the key themes)
A Satire of the Three Estates
General:
Social class
Caste
Notes[edit]
Wikimedia Commons has media related to Estates of the realm.
^ Jump up to: a b Huizinga The Waning of the Middle Ages (1919, 1924:47).
Jump up ^ Georges Duby, The Three Orders: Feudal Society Imagined, Part 1
^ Jump up to: a b Encyclopædia Britannica, "History of Europe – Middle Ages – From territorial principalities to territorial monarchies"
Jump up ^ Encyclopædia Britannica, "History of Europe – Middle Ages – From territorial principalities to territorial monarchies – The three orders"
Jump up ^ R. R. Palmer, A History of the Modern World 1961, p. 334.
^ Jump up to: a b Henslin, James M. (2004). "9". Sociology: A Down-to-Earth Approach. Allyn & Bacon. p. 225. ISBN 0205407358.
Jump up ^ "France's Financial Crisis: 1783–1788". Retrieved 26 October 2008.
Jump up ^ Hibbert, pp. 35, 36
^ Jump up to: a b "Terror, Reign of"; Encyclopædia Britannica
Jump up ^ Kidd, Colin Subverting Scotland's Past: Scottish Whig Historians and the Creation of an Anglo-British Identity 1689–1830 Cambridge University Press (2003) pp133
Jump up ^ Mann, Alastair, "A Brief History of an Ancient Institution: The Scottish Parliament", Scottish Parliamentary Review, Vol. I, No. 1 (June, 2013) [Edinburgh: Blacket Avenue Press]
Jump up ^ http://wiki.narc.fi/portti/index.php/Teema:_Irtolaisuus
Jump up ^ Original Act 971/1995
Jump up ^ Joaquim Albareda, "Estat i nació a l'Europa moderna"
References[edit]
Steven Kreis lecture on "The Origins of the French Revolution"
Notes on France and the Old Regime
Giles Constable. “The Orders of Society”, chap. 3 of Three Studies in Medieval Religious and Social Thought. Cambridge–New York: Cambridge University Press, 1995, pp. 249–360.
Bernhard Jussen, ed. Ordering Medieval Society: Perspectives on Intellectual and Practical Modes of Shaping Social Relations. Trans. by Pamela Selwyn. Philadelphia: University of Pennsylvania Press, 2001.
Jackson J. Spielvogel, Western Civilization, West Publishing Co. Minneapolis, 1994 for the English-language version of the quote from Abbé Sieyès, quoted at http://www.magnesium.net/~locutus/work/eurohist2.htm[permanent dead link].
http://vdaucourt.free.fr/Mothisto/Sieyes2/Sieyes2.htm for French-language original of this quotation.
Michael P. Fitzsimmons, The Night the Old Regime Ended: August 4, 1789 and the French Revolution, Pennsylvania State University Press, 2003. ISBN 0-271-02233-7, quoted and paraphrased at https://web.archive.org/web/20041204105931/http://www3.uakron.edu/hfrance/reviews/crubaugh.html.
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Estamentu – Basque
eu
eu
interlanguage-link-target

values:
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values: رسته اجتماعی – Persian

values:
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values:
https://gl.wikipedia.org/wiki/Estamento
Estamento – Galician
gl
gl
interlanguage-link-target

values:
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values: 중세 사회 계급 – Korean

values: Սոցիալական շերտավորում – Armenian

values:
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values: קורפורציה – Hebrew

values:
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values: Сословие – Kazakh

values:
https://lb.wikipedia.org/wiki/Stand
Stand – Luxembourgish
lb
lb
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values:
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values:
https://lt.wikipedia.org/wiki/Luomas
Luomas – Lithuanian
lt
lt
interlanguage-link-target

values:
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values:
https://nl.wikipedia.org/wiki/Staten
Staten – Dutch
nl
nl
interlanguage-link-target

values:
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values:
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display: none;

values:
https://pt.wikipedia.org/wiki/Estamento
Estamento – Portuguese
pt
pt
interlanguage-link-target

values:
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values: Сословие – Russian

values:
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display: none;

values:
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values:
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display: none;

values: ฐานันดรแห่งราชอาณาจักร – Thai

values:
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display: none;

values: Суспільний стан – Ukrainian

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values:
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