A colloquial term for a small, independent, family-owned business. Unlike franchises and large corporations, which have multiple operations in various locations, mom and pop shops usually have a single location that often occupies a physically small space. The “shop” could be any type of business, such as an auto repair garage, bookstore or restaurant.

"Mom and pop" can also refer to inexperienced investors who play the market casually and do not rely on trading to significantly supplement their income.

Mom and pop shops sometimes have difficulty competing with larger businesses' buying power. This competitive disadvantage often results in high prices at mom and pop operations. Mom and pop shops are able to stay competitive by differentiating themselves from their large-scale competitors with a unique product, exceptional service and/or other personalized feel.