Small Business Categories
The following definitions are those created by the U.S. Small Business Administration. If you have any questions after reviewing the small-business categories, please go to our Resources page.
Please note: If your company is not registered as a small/diverse business as defined by the federal Small Business Administration on the Central Contractor Registration website, we recommend you do so.
Small Business Concern:
Is one that is owned by a U.S. citizen(s) and that falls within the federal government's size standards for small business. The government's small business size standards may be found in the Federal Acquisition Regulation 19.102 and on the government's website.
Minority-Owned Small Business:
Is a small business that is at least 51 percent owned, managed and controlled by one or more individual(s) who are African American, Hispanic American, Native Indian American, Asian Indian American, Subcontinent-Asian American or Asian Pacific American. Acceptable certifications are provided by the National Minority Supplier Development Council, local minority diversity councils and by federal, state and local Governments.
Women-Owned Small Business:
Is a small business that is at least 51 percent owned by one or more women and whose management and operations are controlled by one or more women.
Small Disadvantaged Business:
Is a small business that: is at least 51 percent owned by an individual(s) who the federal government considers to be socially and economically disadvantaged; has its management and daily operation controlled by such an individual(s); and, whose owner(s) net worth, excluding equity in the business and primary residence, does not exceed $750,000. Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent-Asian Americans, as well as any others who believe they are socially and economically disadvantaged may qualify. The federal government requires that companies representing themselves as small disadvantaged business must be certified by the U.S. Small Business Administration.
HUB-Zone Small Business:
Is a small business whose primary office is located in a Historically Underutilized Business Zone and 35 percent of whose employees reside in the HUB-Zone. The federal government requires that companies that represent themselves as a HUB-Zone small business must be certified by the SBA.
Veteran-Owned Small Business:
Is a small business that is at least 51 percent owned by one or more veterans or, in the case of any publicly-owned business, not less than 51 percent of the stock is owned by one or more veterans, and the management and daily business operations of which are controlled by one or more veterans.
Service-Disabled Veteran-Owned Small Business:
Is a small business that is at least 51 percent owned by one or more service-disabled veterans or, in the case of any publicly-owned business, not less than 51 percent of the stock is owned by one or more service-disabled veterans, and the management and daily business operations of which are controlled by one or more service-disabled veterans or in the case of a permanent and severe disability, the spouse or permanent caregiver of such veteran.
Minority- and Women-Owned Business Definitions — Other Than Small-Business Categories:
- For-profit enterprise
- Physically located in the USA
- Owned, operated and controlled by minority group members or non-minority women who are U.S. citizens
- Minority group members: Asian-Pacific Americans, Asian-Indians, African Americans, Hispanic Americans, and Native Americans
- Ownership must be at least 51 percent
- Must be certified by NMSDC, WBENC or other generally recognized certifying body