In the recent Presidential debate between Barack Obama and Mitt Romney, it was proposed that under the GOP presidential candidate’s definition even Donald Trump would be considered a small business.
While political fact checkers have already tackled this in regards to Donald Trump, we’d like to just cover the definition of small businesses and what this means to businesses interested in government contracting.
In general, the Small Business Administration defines a small business as an independently owned and operated, for-profit company which is not dominant in its field. Depending upon the industry, SBA size standards look at the average number of employees during the past 12 months or sales volume averaged over three years. For instance, manufacturing firms may have anywhere from 500-1500 employees depending upon what they are manufacturing, while construction firms may not exceed $5 to $21 million depending on the type of construction.
The federal government has set a goal of awarding at least 23% of all contracting dollars to small businesses during the fiscal year. Unfortunately, they have failed to meet this goal during the past six years. This is why it is imperative for small businesses to register for federal contracting and market their business effectively to purchasing officers.
For more information about federal contracting opportunities for small businesses, call the Contractor Helpline at (877) 252-2700 ext 1.