As we celebrate Small Business Week, it’s worth revisiting what “small business” really means. Many companies assume they’re too large to qualify, but in fact, they may meet the official criteria—and are eligible for a wide range of valuable resources and funding.
Defining a Small Business
The U.S. Small Business Administration (SBA) defines a small business as a company that is independently owned and operated, organized for profit, not dominant in its industry, and falls within specific size standards based on its sector.
Size standards are usually based on the number of employees or average annual revenue, and they vary by industry. For example:
- Most manufacturing and mining companies with fewer than 500 employees qualify
- Many non-manufacturing businesses qualify if they have less than $7.5 million in average yearly revenue, but can have up to $41.5 million in average yearly revenue depending on their industry
You can check out the full list of SBA size standards here.
Why This Matters
Understanding whether your business meets the SBA’s definition can open the door to valuable opportunities, including:
- Access to federal and state funding programs
- Tax incentives and credits designed for small businesses
- Eligibility for government contracting opportunities
- Free or low-cost advisory and mentorship programs
According to the SBA, 99.9% of all U.S. businesses are considered small. That includes many companies that might not think of themselves that way—especially those with growing teams, multiple locations, or fast-paced expansion
At SKC, we work closely with entrepreneurs and small business owners, many who are surprised to learn they qualify for small business support, and even more surprised at the resources available to them once they do. In honor of Small Business Week, we’ll be sharing tools, resources, and insights to help businesses, whether or not they see themselves as “small", make the most of the opportunities available to them.