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The phrase "small business" has become loaded with emotional overtones. Everyone appears to be for it. Numerous private associations have been formed to promote its welfare. Recently one of the leftist weeklies issued a special supplement on postwar planning: A Plan on Which Labor, Farmers and Small Business Can Unite. Thousands of books, brochures, leaflets, and articles have been written extolling its virtues and suggesting ways and means for assuring its survival and expansion. Both the United States Senate and the House have created special small business committees. Early in World War II, the President of the United States created the Smaller War Plants Corporation. Special small business loan provisions were incorporated in the G. I. Bill of Rights, as enacted in 1944. The Department of Commerce has created a special unit to promote small business but, so far, has not found any formula for doing things for small business which would differ from what might be done generally by government for business. In the past decade, over four hundred bills have been introduced in Congress to help small business. Yet, there is no commonly accepted definition of small business or statement of what the problem really is. This article is designed to throw some light on the problem and to provide the necessary background for subsequent discussion. WIT Is SMALL Busirss? The political character of the "problem" of small business is suggested by Maury Maverick's definition: Any business which cannot afford a lobbyist in Washington. One study of the Department of Labor includes any firm which is below the average in number of employees for its industry. The average man, when he uses the term "small business" probably means almost any type of business locally owned and operated in which the owner is the "boss" and actually is in charge of operations; he may be in business for himself or he may have a few employees associated with him. Popularly, the concept seems to be associated with "individual" enterprise.