Usually, the number of employees and average annual receipts are the bases of the size standards. Size guidelines that qualify a firm, including its affiliates, define the size of a firm according to most programs of the Small Business Administration (SBA). Using those criteria, the following are the standards for a small business established by the Small Business Administration (SBA):
- 500 employees for most manufacturing and mining industries, and
- $7 million in average annual receipts for most non-manufacturing industries.
“A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and federal contracting programs. The definition of “small” varies by industry.” – SBA.
There may be many exceptions, but these are the primary size standards by industry.
INDUSTRY SIZE STANDARDS
|
INDUSTRY |
SIZE STANDARD |
| Construction |
|
| Manufacturing |
|
| Mining |
|
| Retail Trade |
|
| Services |
|
| Wholesale Trade |
|
| Other industries |
|
Source: SBA.gov
The above information serves to show you the general size standards for various industries. Refer to the SBA’s Small Business Size Regulations or the Table of Small Business Size Standard (file available in excel format at the SBA website) for more information on size standards.
Is the information above useful? What other information can you share about industry size and standards? Please write in the comments below.
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