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 conglomerates. 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.
More specifically defined, Independent means:
• The majority of the business’ ownership is private, by employees, the community, or an area cooperative, and is resident to the community in which it’s based
• The business operates out of a physical storefront or similar and is the only business residing at that specific doorway’s address (not a kiosk, home based business, etc.)
• The business relies solely on its unique name and reputation (ie, does not “wear” a regionally or nationally recognized brand name)
• The business is registered only in its home state, and has no affiliation with an out of state headquarters or corporate office
• Full decision making function for the business is held by the local owner(s), including the name, signage, brand, appearance, purchasing, etc.
• The business is solely responsible for paying its own rent, marketing, and other expenses
• It has no more than six outlets, all of which are located in a single state, with a central base of operations in that state
• It is not a vendor (ie, does not sell wholesale)
