The United States Small Business Administration (SBA) defines, by either average annual sales or number of employees, whether or not a business is considered small (or SBE – small business enterprise) by their primary NAICS code. [NAICS = North American Industry Classifications System, a set of codes used to classify the type of work a business performs or product(s) they provide.] This past Monday, August 19th the SBA issued an updated size standard table.
The size standard is important, as the federal government mandates that 23% of its budget be spent with small business. This spend goal can be achieved via direct contracts with small businesses or through tiered spending. Only companies that fall within the SBA’s size limits are considered small businesses.