The
Small Business Administration defines a small business concern as "one
that is independently owned and operated and which is not dominant in
its field of operation.” It is important to note that the definition
will vary from industry to industry and from state to state. This
numerical definition is the "size standard" and is almost always stated
in terms of either number of employees or average annual receipts.
The
legal definition of "small" may vary by state or industry but is
generally under 100 employees. These businesses are normally privately
owned corporations, partnerships, or sole proprietorships. There are
also sales volume standards, but they vary by industry.
The
primary reason you would even want to have any kind of small business
designation is if you were trying to do business with the federal
government or one of its contractors, and your part of any contract
would help that organization achieve their small business quota.
Otherwise,
being a small business is a distinction that you should own and be
proud of. You are a member of the largest sector in the marketplace in
gross domestic production, employment, innovation, number of exporters,
and many other areas.
If you're a small business owner, you're very important.
