A small business is a privately owned and operated business. A small business typically has a small number of employees. In the United States, the legal definition of a small business is determined by the U.S. Small Business Administration (SBA), which sets the criteria to be used by the SBA in making small business determinations.
Criteria by the SBA in determining the definition of a small business includes the number of workers employed or annual receipts. The following criteria is used by the SBA to define a small business:
- Manufacturing: Maximum number of employees may range from 500 to 1500
- Wholesaling: Maximum number of employees may range from 100 to 500
- Services: Annual receipts may not exceed $2.5 to $21.5 million
- Retailing: Annual receipts may not exceed $5.0 to $21.0 million
- General and Heavy Construction: Annual receipts may not exceed $13.5 to $17 million
- Special Trade Construction: Annual receipts may not exceed $7 million
- Agriculture: Annual receipts may not exceed $0.5 to $9.0 million
[Source: SBA’s definition of a small business concern]
