The U.S. Small Business Administration (SBA) is proposing an overhaul of business size standards, a move that could enable more than 110,000 enterprises to be categorized as small businesses.
The proposal seeks to modernize the government’s definition and classification of small businesses, the SBA said in an Aug. 20 statement.
One of the proposed changes involves updating the North American Industry Classification System (NAICS) standard, according to an Aug. 20 notice published in the Federal Register.
NAICS is used to classify business establishments and assigns a six-digit code to businesses. The first two digits indicate the business sector; the third, the subsector; the fourth, the industry group; the fifth, the NAICS industry; and the sixth, the national industry….