In which scenario would a small business be considered dominant in its field?

A small business is considered dominant in its field when it holds the majority market share. This means that the business has a significant portion of the total sales or customers within its industry compared to its competitors. Dominance in market share typically indicates that the business has a strong position in terms of influence, pricing power, and brand recognition, allowing it to leverage these factors to maintain or grow its success in the marketplace.

While having fewer than 500 employees, being independently owned, or operating in a niche market can describe certain characteristics of small businesses, these factors alone do not necessarily confer dominance. For instance, a business could have 500 employees yet not hold a significant market share compared to its competitors. Similarly, being independently owned or focusing on a niche market does not guarantee that the business leads in market share; it may simply indicate its structural characteristics or specialization within a specific area without indicating overall market dominance. Therefore, the criterion of holding the majority market share is the definitive measure of a small business's dominance in its field.