According to the Small Business Administration (SBA), small businesses accounted for 99.0% of all businesses in the U.S. in 2019. To be considered a small business, companies must meet size standards and other qualifications set by the SBA.
Who are Small Business Owners?
The U.S. Census shows that more than 64% of small businesses are owned by men, while women own nearly 29%. A small business owner is an entrepreneur or even a group of business aficionados.
Some 25% of small business owners work more than 60 hours every week, and 50% are run as a home business, according to the SBA. An owner creates and manages the business venture to ensure growth and profitability.
What is a Small Business? How to Qualify
The SBA defines a small business by size and revenue, which vary by industry. But what is a small business? Here are some qualifications for a small business.
- A small business has at least one place of business in the United States, with primary operations in the U.S.
- It’s organized as a for-profit entity.
- The small business is independently owned and operated. It may be a corporation, partnership, or sole proprietorship.
- It has fewer than 1,500 employees, with less than $38.5 million revenue.
- A small business holds a minority market share in the industry.
The small business classification is important for federal government procurement, since vendors must correspond with the contracting officer’s NAICS code to be eligible for that contract.
What Are the Types of Small Businesses?
Small businesses can come in all shapes and sizes. The federal government devotes resources to working with small businesses, which is just part of why it’s important to know which type of business you own and what loans your business might qualify for.
Here are just a few business types eligible for federal contracts.
- Small Disadvantaged Business
- Women-Owned Small Business (WOSB)
- Service-Disabled Veteran-Owned Small Business (SDVOSB)
Here are a few of the small business programs for federal contracts.
- 8(a) Business Development Program
- HUBZone Empowerment Contracting Program
- SBA’s Mentor-Protégé Program
- Small Business Set-Aside Program
- Small Business Subcontracting Program
How Rafael Marrero & Company Can Help You Qualify as a Small Business
Once you’ve determined that you meet the qualifications to be recognized as a small business, you can submit your proposal for the applicable federal contracts with all the required details and attachments. Rafael Marrero & Company will work with you to help you deliver the best proposals for government contracts to help your small business succeed and thrive.