Final answer:
The US Small Business Administration (SBA) defines a small business as one that is independently owned and operated, is not dominant in its field, and meets certain size standards set by the SBA.
Step-by-step explanation:
The US Small Business Administration (SBA) defines a small business as one that is independently owned and operated, is not dominant in its field, and meets certain size standards set by the SBA. The size standards vary depending on the industry and are typically based on either the number of employees or the annual revenue generated by the business. For example, in the manufacturing industry, a small business may have less than 500 employees, while in the retail trade industry, a small business may have annual revenue of less than $7 million.
It's important to note that the SBA's definition of a small business is used for government programs and contracting purposes. Other organizations, such as banks or investors, may have different criteria for defining a small business based on their own needs and requirements.
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