Part I: The Government Definition of a “Small Business” U. S. Department of the Treasury

Size depends on the amount of average annual receipts or by the variety of employees. Service businesses generally have a size simple that can be decided by averaging your gross annual receipts for the last three years. This average is then associated with the North American Industrial Classification System NAICS code for the procurement you want to compete under. If your average annual receipts falls under the amount particular for that NAICS code, then your firm is considered to be small by definition.

For instance, if you were promoting Computer Programming Services under NAICS code 541511 your common annual receipts over the last three years would need to be below $21. 0 million to qualify as a small enterprise worry. For most manufacturing NAICS codes, the number of personnel might be used as a size standard. For instance, a mining firm is regarded “small” if it has fewer than 500 personnel.

See also  I have a storefront selling both retail and private label herbal supplements. I am considering direct sales, where do I start? SmallBizClub