Overview
Small Business Enterprise (SBE) classification is determined using specific criteria established by the U.S. Small Business Administration (SBA). This article explains how supplier.io identifies suppliers as small businesses and what factors affect this classification.
What is a Small Business?
A Small Business Enterprise (SBE) is an independently owned company that is limited in size and revenue according to industry standards set by the SBA. The size threshold varies by industry and is determined by the business's primary NAICS code.
Key Terms
NAICS Code
The North American Industry Classification System (NAICS) uses six-digit codes to classify businesses by industry. Federal agencies use these codes to determine which size standards apply to a business.
System for Award Management (SAM)
SAM is an online federal registration database where businesses register for government contracting and grant opportunities. When registering, businesses report their socio-economic status and the SAM system calculates whether they qualify as small for each NAICS code based on SBA size standards.
How supplier.io Determines Small Business Status
supplier.io identifies a supplier as a small business only when there is a corresponding source documenting this status. Sources include:
- SAM.gov registration (based on Primary NAICS code)
- Third-party certification agency
- Self-reported data through SupplierOne registration with signed affidavit
Important: supplier.io uses only the Primary NAICS code to determine small business status. A company may qualify as small under secondary NAICS codes but will not be flagged as small in our system unless their Primary NAICS qualifies.
Why a Supplier May No Longer Appear as Small Business
- The company grew beyond SBA size thresholds for their industry
- The supplier changed their Primary NAICS code in SAM
- SAM registration expired and was not renewed
Questions?
For questions about a specific supplier's small business status, contact support@supplier.io.