Multi-million-dollar businesses can be considered small business if you can find the right loopholes.
if you’re a
soybean farmer, you have a small business only if your annual receipts total less than $1 million. However, if you’re generating nuclear power, your business is considered “small” as long as you have fewer than 750 employees.
The SBA publishes
a comprehensive table of standards defining acceptable sizes for a qualifying small business’ workforce, and/or how much money they generate in average receipts. Some of these standards are ranges, with subclasses within an industry qualifying at varying levels. The list is exhaustive, but here is an overview of maximum workforce sizes in certain prominent industries (as of 2017):
- Manufacturing: 500 to 1,500 employees, with 27% capped at 500.
- Construction: Up to $36.5 million a year in average receipts.
- Retail: Up to $7.5 million in average annual receipts for one-third of all retail trade subclasses. There is no cap on workforce.
- Finance and insurance: Up to 1,500 employees for direct property and casualty insurance carriers. Up to a range of $32.5 million to $38.5 million in average annual receipts.
- Real estate: Up to a range of $7.5 million to $32.5 million in average annual receipts.
- Health care: Up to a range of $7.5 million to $38.5 million in average annual receipts.
- Science and technology: Up to a range of $7.5 million to $20.5 million in average annual receipts, or a maximum of 1,000 to 1,500 employees.
- Information sector: Up to a range of 500 to 1,500 employees. Up to a range of $7.5 million to $38.5 million in average annual receipts.
- Shipping and cargo: Up to a range of 500 to 1,500 employees, with some subclasses limited to a range of $7.5 million to $37.5 million in average annual receipts.
- Wholesale: Up to a range of 100 to 250 employees.
- Agriculture: Up to $750,000 in average annual receipts.
Definition of a Small Business: How Big Is Still Considered Small? - Shopify Singapore