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NAICS Codes: Is Your Company a Small Business? Blog Feature
John Abel

By: John Abel on January 10th, 2018

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NAICS Codes: Is Your Company a Small Business?

GSA Schedule | Resources and Insight | SBA | Contracts | 1 Min Read

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 can you 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. 

How to 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 resources available, and don’t leave potential set-aside dollars on the table. Reach out to us for GSA Schedule assistance and for help determining your opportunities with your NAICS codes.  

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About John Abel

John Abel is a Lead Consultant at The Winvale Group focusing on government contracting and federal acquisition opportunities for businesses. He is a native of Stafford, Virginia and graduated from James Madison University with his Bachelor's of Arts in History.