SMALL BUSINESS CONCERN

What is SBA's definition of asmall business concern?

SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:

·             Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;

·            Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;

·             Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;

·             Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;

·             General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;

·             Special Trade Construction: Annual receipts may not exceed $7 million; and

·             Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

Small firms:

·         Represent 99.7 percent of all employer firms.

·         Employ half of all private sector employees.

·         Pay 45 percent of total U.S. private payroll.

·         Have generated 60 to 80 percent of net new jobs annually over the last decade.

·         Create more than 50 percent of nonfarm private gross domestic product (GDP).

·         Supplied more than 23 percent of the total value of federal prime contracts in FY 2004.

·         Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.

·         Are employers of 41 percent of high tech workers (such as scientists, engineers, and computer workers).

·         Are 53 percent home-based and 3 percent franchises.

·         Made up 97 percent of all identified exporters and produced 26 percent of the known export value in FY 2002.