subject: What's A Little Business? - It May Not Be What You Assume [print this page] "What is a small business?" is a query entrepreneurs do not usually ask, because as business owners we have a tendency to assume the answer is pretty obvious. We have all known for it slow that any business below five hundred staff is taken into account a tiny business--right? WRONG!
The "Small Business Administration" (SBA), makes the dimensions commonplace determination for all NAICS business codes, and publishes their results in a 44-page document called the "Table of Tiny Business Size Standards."
Here is a sample of the SBA's numerous business size standards:
* A convenience store is considered a small business if it has $27.0 million, or less, in annual revenue.
* A software publisher...if it's $25.zero million, or less, in annual revenue.
* A producer of chickens for egg production...if it has $12.5 million, or less, in annual revenue.
* A producer of chickens for meat consumption...if it has $0.75 million, or less, in annual revenue.
* A telecommunications reseller is taken into account a little business if they have 1,five hundred workers, or less.
* A cigarette manufacturer...if it has one,000 employees.
* A Mineral Wool manufacturer...750 employees.
* The Wholesale Trade (all merchandise)...a hundred employees.
Well, as you'll see, the solution for; "what is a little business?" varies all over the place...there's no easy answer. The explanation for all the variations appears to be because of the SBA's attractiveness process. Initially, any business seeking government procurement contracts can "self-certify" their business as being "small." In different words, you just say you're a small business.
But, anyone (usually a competitor) can challenge your designation if they assume you do not match the SBA size standards. The challenge goes through the SBA charm process and they'll either modification the scale standards (which has created the variations), issue an exemption on size, or label your business as "alternative than small." The SBA publishes an eighteen page document listing (in fine print) the names of companies that are challenged and subsequently labeled as "other than tiny" and so not eligible for little business government contracts, or loans.
Therefore, why is this even of concern to most business homeowners? Here are four basic reasons:
1.) Size becomes very important if you ever attempt to try to to business with the national, as a result of many of their procurement programs are directed only at businesses defined as small.
2.) If you ever set up on applying for any of the SBA's loan programs, it's essential that your business is indeed thought of "small."
3.) Periodically, the govt. offers special programs, grants, loans, etc. to tiny businesses, however you want to be designated "small" by the SBA in order to qualify.
4.) The numerous government regulations affecting business typically have completely different rules relying on size standards. It ought to be necessary to you to monitor the laws and rules being created that affect your business, and participate in having your voice heard...protecting your "small" status.
