consumers, the U.S. Small Business Administration (SBA)
bases its definition of a small business on the number of
employees and sales levels. Those limits for most non-manufacturing
businesses are no more than 500 and sales of $7
million (Summary of size standards by industry, n.d.).
Although these size limitations are the controlling factors,
the SBA definition also includes the concept that a small
business is basically independently owned and operated, is
organized for profit, and is not dominant in its field (What is SBA’s definition of a small business concern? n.d.).
Based on the number of employees, the SBA’s definition
covers the vast majority of U.S. businesses. For example, in
Colorado, approximately 98 percent of businesses have
fewer than 100 employees, 90 percent have fewer than 20
employees, and 60 percent have from 1 to 4 employees.
Nearly 80 percent of the state’s wages come from businesses
with fewer than 500 employees (Draper 2012).