"Small Business." Does that term apply to you?
We always like reading the work of Gwendolyn Bounds in the Wall Street Journal. This week she highlights an effort by the SBA to refine the federal agency’s definition of what a "small" business is.
And, boy, the SBA needs to!
For example, they have 37 different "size standards" to account for the full gamut of business types. One of those standards states that non-manufacturing companies with as many as 500 employees qualify as a "small business."
Doesn’t that sound awfully "large" to you? Or at least, "medium"?!
Who cares, you say?
Well, if you’re a company that’s seeking your little chunk of the BILLIONS the SBA provides in loan guarantees and contracts each year, you do! Your 3-person company will potentially be competing with a 473-person company for the same money.
Should the maximum size be reduced to 100 employees? What do you think? To voice your opinion, the SBA has set up a special site for your input. It’s live through Sunday, March 27.
Now, on a related note, what do you think of the term "Small Business" generally? Does it describe you? Do you see your business as "small" or "BIGTIME!!!"? When you wrote your business plan, did you say, "I want to create a small business that does XYZ…"?