Legal Definitions - small-business concern

A small-business concern refers to a business that meets specific criteria established by law, primarily to qualify for certain government programs, benefits, or regulatory exemptions. These businesses are typically characterized by:

• Independent Ownership and Operation: They are not controlled by a larger corporation or entity.
• Non-Dominant in their Field: They do not hold a significant market share or have substantial influence over their industry.
• Limited Size: Their employee count and annual revenue fall below certain thresholds defined by regulations, which vary depending on the specific industry.

Here are some examples illustrating what qualifies as a small-business concern:

• Example 1: The Local Bakery

  Imagine "The Daily Crumb," a bakery owned by a husband and wife, employing five bakers and two counter staff. They serve their local community, making custom cakes and fresh bread daily.

  This business is an independently owned and operated entity. With only seven employees and serving a local market, it is clearly not dominant in its field when compared to national grocery chains or large commercial bakeries. Its employee count and business volume are limited, falling within typical thresholds. This structure would likely qualify "The Daily Crumb" as a small-business concern, potentially making it eligible for specific local government grants or simplified regulatory compliance.

• Example 2: The Niche Software Development Firm

  "Innovate Solutions Inc." is a software company with 15 employees that specializes in developing custom inventory management systems for small manufacturing plants. It is privately owned by its founder.

  "Innovate Solutions Inc." is independently owned and focuses on a niche market, meaning it is not dominant in the broader software industry, which includes giant tech corporations. Its limited number of employees and specialized revenue stream would likely place it within the defined thresholds for a small-business concern, allowing it to potentially bid on government contracts set aside for smaller enterprises or access specific business development resources.

• Example 3: The Regional Landscaping Company

  "GreenScape Designs" is a landscaping company with 30 full-time employees that provides design, installation, and maintenance services for residential and commercial properties within a three-county area. It is owned by a single individual.

  "GreenScape Designs" is independently owned and operated. While successful in its region, it is not dominant in the national landscaping market, which includes much larger corporations operating across multiple states. Its employee count and business volume, while larger than a very small local business, would still fall within the federal or state-defined limits for a small-business concern in its industry, potentially allowing it to qualify for preferential loan programs or specific tax incentives aimed at supporting regional growth.