What Qualifies as an SBE?
An SBE, or Small Business Enterprise, is a specific designation given to businesses that meet certain criteria primarily related to their size and ownership structure, allowing them to access various benefits or programs.
General SBE Qualification Criteria
For a business to qualify as a Small Business Enterprise, it typically needs to be majority-owned by another business that meets specific thresholds for its annual revenue and employee count. This means the owning business must itself operate within defined small business parameters.
The general thresholds for the owning business include:
- Annual Revenue: The owning business must generate less than $750,000 annually.
- Number of Employees: The owning business must have fewer than 100 employees.
It is important to note that while these are common guidelines, the exact annual volume and number of employees permitted for SBE qualification may vary by industry or by the specific certifying body, program, or government agency offering the certification.
Key SBE Qualification Requirements Summary
Here is a summary of the general criteria that an entity must meet to qualify as an SBE:
| Criterion | General Threshold for Owning Business |
|---|---|
| Ownership Structure | The applying business must be majority-owned by another business. |
| Annual Revenue | The owning business must make less than $750,000 annually. |
| Number of Employees | The owning business must have less than 100 employees. |
Important Considerations for SBE Qualification
- Industry Variation: As mentioned, the precise definitions of "small" can differ significantly across various industries and programs. A business that qualifies as small in one sector might not in another due to varying capital intensity or market sizes.
- Program Specifics: Different SBE certification programs (e.g., federal, state, local government, corporate supplier diversity programs) may have their own unique set of requirements beyond general size standards. Businesses seeking SBE status should always review the specific guidelines of the program they intend to apply for.
