How to Qualify For Small Business Status
- Mark McGraw
The SBA uses several factors to determine whether a business is eligible for small-business status, including total number of employees, income, and the industry it is in. The NAICS code is used to categorize companies, and it also determines how large a company must be to qualify as small-business. Listed below are some of the most important considerations when evaluating your small-business status. This information is crucial in making the right business decision.
First, consider the size of your company. Depending on the industry, small businesses may be classified based on their annual revenue, value of assets, net profit, or a combination of these factors. In India, manufacturing and service enterprises must be under Rs 10 crore in annual turnover to qualify. But the size of the business isn’t the only factor to consider. To qualify as a small business, a business must have fewer employees than 500 employees.
A small business is more likely to form an organization and advocacy group than a larger company. This is because they are closer to their clients and customers, and often have the time to meet with them face-to-face. They are more likely to know each individual customer and respond to them personally. Economies of scale can be useful for larger companies, but small businesses can also benefit from joining a local or industry-specific association. There are also many other benefits to joining a small business.