Small‑business size debate: some favor net‑income test over gross revenue

A central policy debate at the town hall was how to define a ‘‘small business’’ for certification: net income (profit) versus top‑line revenue. Construction industry participants and others argued that gross‑revenue thresholds can exclude firms that take large contracts but retain little income after subcontractor and material costs. One participant summarized the argument in stark terms: "NET INCOME NET INCOME MUCH BETTER BECAUSE ... IT'S WHAT WE'RE KEEPING THAT DEFINES WHO WE ARE."

Panelists with SBA experience urged an industry‑sensitive approach rather than a single flat threshold, referencing NAICS‑based size standards and suggesting the state could adopt broader industry buckets (construction, professional services, manufacturing) with tailored criteria. Officials said the goal is to be inclusive while setting standards that fairly reflect business models across sectors.