Having a small business designation can fuel marketing and sales efforts for new federal business opportunities. Every year, the Small Business Administration (SBA) aims for certain percentage goals of budget spending that are designated for small business contracts. So, it’s critical to know if your company is eligible for small business set-aside contracts, but how to be sure? The answer is lies in the North American Industry Classification System (NAICS). Your company’s NAICS codes help determine if you qualify as a small business based on certain size standards. Through the Small Business Act, the SBA established size standards for NAICS codes to help businesses get their designation, and see relevant opportunities for which they qualify.
Find out if you are a small business
The easiest way to find out for your company is to use this SBA document for small business size standards. Each NAICS code is assigned either a threshold dollar amount for revenue or number of employees so you can determine if your business qualifies as small for opportunities for that NAICS code; if your company falls under the dollar amount or employee number, then the SBA considers you a small business concern.
Another helpful tool to understand and determine size standards, and see how you fit into the small business landscape is the SBA’s Size Standards Tool. For example, let’s say you own an IT company whose product offering falls under NAICS code 334111, Electronic Computer Manufacturing. In the drop-down box, select that NAICS and enter the number of employees. The tool will then show the result, confirming that you are or aren't considered a small business eligible for government set-aside contracts
The SBA makes it simple for business owners to understand their size standards, so take advantage of the reources available, and don’t leave potential set-aside dollars on the table. Reach out to us now for help and analysis determining your NAICS codes by emailing our Director of Sales, Marcy Dausch at firstname.lastname@example.org.