What is the definition of a small business??

[Angry Dragon]

[GP6971]

1. By Federal Standards? n/t

[Angry Dragon]

3. yes

the term is bandied about so there must be definition

[GP6971]

7. It's determined by the Small Business Administration

using the NAICS code (North American Industry Classification System). According to the code the business uses to describe it's business, it could be either total annual sales dollars or number of employees.

[Angry Dragon]

9. seems very arbitrary

[GP6971]

11. Actullay it's not

It took me a long time to understand the logic, but it actually works.

Go figure...federal gov't.

[Angry Dragon]

12. At this point I take your word for it

unless you would like to explain it to us

[CK_John]

2. Less than 500 in us, less than 50 in Australia.

[Angry Dragon]

4. doesn't seem very small to me

[canetoad]

5. Here's the official definitions

The Australian Taxation Office defines a small business as one that has annual revenue turnover (excluding GST) of less than $2 million. Fair Work Australia defines a small business as one that has less than 15 employees.

http://asic.gov.au/for-business/your-business/small-business/small-business-overview/small-business-what-is-small-business/

[bluepen]

6. It varies by industry, according to the Small Business Administration.

You can see the detailed explanation here:

https://www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards/table-small-business-size-standards

[Angry Dragon]

8. seems very arbitrary

[bluepen]

10. Not really.

https://www.sba.gov/sites/default/files/size_standards_methodology.pdf

There’s 61 pages explaining their methodology. That is, if you want to wade through typical bureaucratic bs.