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Definition of Business Types | Home


DEFINITION OF SMALL BUSINESS CONCERN

A “Small Business Concern” is defined as a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13 C.F.R. § 121 (2006) and  48 C.F.R. § 19.102 (2005), respectively.  In order for a concern to qualify as not being dominant in its field of operation,  it must not exercise a controlling or major influence on a national basis, in a business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration shall be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.

DEFINITION OF SMALL DISADVANTAGED BUSINESS CONCERN

A “Small Disadvantaged Business Concern” is defined as a concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals. This term also is defined as  a concern that is at least 51 percent unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian Organization or a publicly owned business that has at least 51 percent of its stock unconditionally owned by one of these entities, whose management and daily business is controlled by members of an economically disadvantaged Indian tribe or Native Hawaiian Organization and meets the requirements of 13 C.F.R. § 124 (2006).

  1. A “Socially disadvantaged individual” is defined as an individual who has been subjected to racial or ethnic prejudice or cultural bias because of his/her identity as a member of a group without regard to his/her qualities as an individual.

  2. An “Economically disadvantaged individual” is defined as a socially disadvantaged individual whose ability to compete in the free enterprise system is impaired due to diminished opportunities to obtain capital and credit as compared to others in the same line of business who are not socially disadvantaged.

Individuals who certify that they are members of named groups (Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent-Asian Americans) are to be considered socially and economically disadvantaged.

  1. A “Subcontinent Asian American” is defined as an United States citizen whose origin is in India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal.

  2. An “Asian-Pacific American” is defined as an United States citizen whose origin is in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands (Republic of Palau), the Northern Mariana Islands, Laos, Kampuchea (Cambodia), Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, or the Federated States of Micronesia.

  3. A “Native American” is defined as an American Indian, Eskimo, Aleut, or native Hawaiian.

  4. A “Native Hawaiian Organization’ is defined as a native Hawaiian controlled community service organization serving Native Hawaiians in the State of Hawaii and chartered as a not-for-profit organization whose business activities will principally benefit such Native Hawaiians.

  5. An “Indian Tribe” is defined as an Indian tribe, band, nation or other organized group of community of Indians including any Alaska Native Corporation as defined in 13 C.F.R. §124.100 (2006) that is recognized as eligible for the special programs and services provided by the U.S. to Indians because of their status as Indians, or that is recognized as such by the State in which such tribe, band, nation, group or community resides.

DEFINITION OF WOMAN-OWNED SMALL BUSINESS CONCERN

A “Woman-Owned Small Business Concern” is defined as a concern that is at least 51 percent owned by one or more women; or in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women.

DEFINITION OF HUBZONE SMALL BUSINESS CONCERN

A “HUBZone Small Business Concern” is defined as a small business, owned and controlled by one or more U.S. citizens, Community Development Corporation or Indian tribe, and whose principal office resides within a historically underutilized business zone (this includes land on recognized Indian reservations). In addition, at least 35 percent of its employees must reside in a HUBZone. Certification is required from the SBA.

DEFINITION OF SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS CONCERN

A “Service-Disabled Veteran-Owned Small Business Concern” is defined as a small business concern that is at least 51 percent owned and operated by one or more service-disabled veterans whose management and daily business operations are controlled by service-disabled veterans. Service-disabled veterans are veterans with a disability that is service connected. Certification is not required from the SBA.

DEFINITION OF VETERAN-OWNED SMALL BUSINESS CONCERN

A “Veteran-Owned Small Business Concern” is defined as a small business concern that is at least 51 percent owned and operated by one or more veterans and whose management and daily business operations are controlled by veterans. Veterans are persons who served in the active military, naval, or air service, and who were discharged or released under conditions other than dishonorable. Certification is not required from the SBA.

DEFINITION OF LARGE BUSINESS CONCERN

A “Large Business Concern” is defined as a business concern that exceeds the small business size code standards established by the Small Business Administration as defined in C.F.R. 13 § 121 (2006).

DEFINITION OF NON-PROFIT ORGANIZATION

A ‘Non-Profit Organization” is defined as an organization not conducted or maintained for the purpose of making profit (excluding HBCU’s/MI’s). Included in this category are: sheltered workshops, universities, colleges, and local, state and federal governments.