- Small businesses are typically defined as having 500 or fewer employees
- The definition means that larger companies may be eligible for more financial options and other assistance than they might expect
- U.S. Small Business Administration programs could have a greater impact on economic recovery if more larger companies begin to use them
Summary by Dirk Langeveld
The description of a company as a “small business” conjures up different images for different people. While many might picture a Main Street retailer or an independent restaurant, a small business can also be considerably larger.
Ami Kassar, CEO of the business advising platform MultiFunding.com, explored this issue recently in an article for Inc. Kassar says small businesses are usually defined as having 500 employees or fewer, so that even fairly sizable companies can qualify for small business programs and aid.
- The definition has created some tensions during the distribution of COVID-19 relief money, as some businesses may be surprised to find that larger competitors also qualify as small firms
- Kassar suggests that the pandemic has helped heighten awareness of U.S. Small Business Administration programs, and that they could play a major role in the economic recovery from the pandemic
- Data shows that small businesses account for nearly two-thirds of net private sector job creation in recent decades
- Women, minorities, and veterans make up a considerable share of the recipients of funding through standard SBA programs