Small Business is a designation established by Small Business Administration (SBA), applicable to businesses that fulfill the size standards as dictated by each North American Industry Classification System (NAICS) code. This designation plays a vital role in determining eligibility for government programs and benefits aimed at supporting small businesses. The criteria for this qualification vary by industry, reflecting the diversity of business sizes within different sectors.
For most manufacturing enterprises, the threshold is set at 500 employees or fewer. Non-manufacturing businesses, on the other hand, typically need to have average annual receipts under $7.5 million to qualify as a small business. These standards are established and regulated by Title 13 Part 121.201 of Code of Federal Regulations. SBA’s small business designation is integral to the U.S. economy, fostering innovation, job creation, and competition.
