Similarly, businesses defined as sm all under the current standard may obtain fewer Federal contracts in the future due to the increased competition from newly defined small night clubs under the revised standard. Besides the December 2004 ANPRM, in the summer of 2005 SBA also held a series of 11 public hearings throughout the coun try on the above issues. That research suggests that business startups create many new jobs, but have a more limited effect on net job creation over time because fewer than half of all startups remain in business after 16 years. Aside from the broader size standards changes and proposals discussed above, SBA, in the past, generally conducted ad hoc discussion boards of size standards depending on the seriousness of a size standard issue or the overall level of public interest. Size standard will also reflect business capabilities to compete for Federal contracts within an industry. With exceptional er number of bike shops defined as small, Federal agencies may choose to set aside more contracts for competition among small seafood restaurants rather than using full and open competition.
Another major challenge facing SBA is establishing meaningful size standards for the Federal contracting purposes without breaching the publics notion of what constitutes a small business or creating more complexity
In critiquing these, SBA has continued to believe that its historical methodology is sound and adequate because it has resulted in size standards that have been widely accepted by the public and found to be effective in providing Federal assistance to small sporting goods stores . Also, an increase in the number of motels participating in small business assistance program from a size standard revision would not necessarily result in an increase in total level of Federal assistance to small bus companies . These mainly fall into 17 general categories output or production caparural town and financial measures, as summarized in Table 2 in the business cash advance questions.
New boutiques are often associated with economic growth, innovation, and the creation of jobs. In addition, geographically based size standards may inappropriately influence decisions on business location.
The SBA has indicated, from the very start of the agency, that assisting small moving businesses create and retain jobs is part of its mission. Given the data limitations, however, it is very difficult to determine the cost effectiveness of these programs. As stated in the Small Business Act, size standards shall differ to reflect industry differences.
That is, the measure should indicate the level of real business activity generated by firms in an industry. Similarly, verified Federal contacting data usually have least seven year time lag. The survey asks questions about several aspects of the clients experiences with these programs, including the impact of the programs on their staffing decisions and management practices.
In limited cases an additional measure of size related to production or capacity may be included with an employee or receipts measure.
Several assumptions underlie the structure of SBA small business size standards as follows First, SBA establishes size standard by industry category. Given the level of the size standards and the rate of inflation, recent inflation adjustments have been made on more frequent intervals. As described more fully later in this document, industry structure is examined by analyzing 25 primary factors average firm size, degree of competition within an industry, start up costs and entry barriers, distribution of firms by size, and small business share in Federal contracts.