The U.S. Small Business Administration defines “small business” according to a set of standards based on industry.
|Industry||Not to exceed|
|Manufacturing and mining||500 employees|
|Wholesale trade||100 employees|
|Retail and service||$6 million average annual revenue|
|General and heavy construction||$28.5 million average annual revenue|
|Special trade contractors||$12 million average annual revenue|
|Agriculture||$0.75 million average annual revenue|
While small businesses often can implement the same quality initiatives found in larger corporations, they will face different challenges along the way. For instance, small businesses tend to have fewer human resources and less up-front capital to dedicate to quality initiatives. Upper management commitment and accessibility, however, can be stronger in a smaller business, and internal communications can be more straightforward.