People often mistakenly define a company as “small” if it has fewer than a certain number of employees, but the criteria depend on the business’s industry. The Small Business Administration (SBA) might not think about your business as a small business, which might reduce your chances of getting loans and other opportunities.
You can call yourself a small business, but if you don’t meet the SBA’s criteria of being a small business then you may lose some opportunities that they offer. To see whether you are a small business or not then it can be determined by looking at your company type, your average annual sales and number of workers.
For several corporations, the standard small business size classification by staff is 500 employees or less. But, your business may create a difference in your size qualifications.
To qualify as a small business, an organization should fall within the dimensions standard, or for the large companies who want to remain as small companies, among its businesses. Although sizes vary as per the businesses, they’re sometimes measured by the number of workers or average annual receipts.
The Small Business Administration (SBA) maintains an extensive list of small business size standards that should attain the requirements required to stay classified as a small business in every sector and subsector.
- Agriculture, forestry, fishing and hunting: Not more than $750,000 in average annual receipts.
- Mining, quarrying, and oil and gas extraction: it should be between 250 to 1,500 workers depending on your subsector.
- Utilities: Not more than 250 workers for renewable power generation subsectors, and not more than 1,000 workers for power and gas distribution businesses.
- Construction: Not more than $36.5 million in average annual receipts.
- Manufacturing: Not more than 500 to 1,500 workers counting on your subsector.
- Wholesale trade: Not more than 100 to 250 workers counting on your subsector.
- Retail trade: Not more than $7.5 to $38.5 million in average annual receipts depending on your subsector. Other sub-sectors have outlined worker maximums from 100 to 500.
- Transportation and warehousing: Not more than 500 to 1,500 workers depending on your subsector. Some sub-sectors have average annual receipt limits between $7.5 million to $37.5 million.
- Information: Not more than 500 to 1,500 workers looking at your subsector. The most average annual receipts range from $7.5 million to $38.5 million.
- Finance and insurance: Not more than 1,500 workers for direct property and casualty insurance carriers, and a majority of $32.5 million to $38.5 million in average annual receipts.
- Real estate, rental and leasing: Not more than $7.5 million to $32.5 million in average annual receipts.
- Professional, scientific and technical services: Not more than $7.5 million to $20.5 million in average annual receipts, or not more than 1,000 to 1,500 workers depending on your subsector.
- Management of firms and enterprises: Not more than $20.5 million average annual receipts.
- Administrative and support, waste management and rectification services: Not more than $7.5 million to $38.5 million in average annual receipts depending on your subsector.
- Educational services: Not more than $7.5 million to $38.5 million in average annual receipts depending on your subsector.
- Healthcare and social assistance: Not more than $7.5 million to $38.5 million in average annual receipts depending on your subsector.
- Arts, recreation and recreation: it should be between $7.5 million to $38.5 million in average annual receipts depending on your subsector.
- Accommodation and food services: It should be between $7.5 million to $38.5 million in average annual receipts depending on your subsector.
- Other services: Not more than $7.5 million to $38.5 million in average annual receipts depending on your subsector.
