The North American Industry Classification System
At the start of your research, it may not be clear what specific industry you should be examining. A good strategy is to find out if your business idea is classified in an industrial classification system. These systems organize industries by assigning them a numeric code. The most commonly used system is the North American Industry Classification System (NAICS). Once you know your Industry Classification Code you can use this number to:
- Find industry-specific statistics on government websites or in library databases
- Generate lists of competitors in company directories
Another common classification system is the Standard Industry Code (SIC). NAICS have mostly replaced the SIC, but the SIC is still used by some commercial databases. Finding and using these classification systems to effectively search can be tricky, so don't hesitate to ask a librarian for help.
Here Are Some Relevant Categories:
| Type |
Code | Description |
|---|---|---|
| NAICS | 72 | Accommodation and Food Services |
| NAICS | 7221 | Full Service Restaurants |
| NAICS | 7222 | Limited-Service Eating Places |
| NAICS | 44-45 | Retail Trade |
| NAICS | 4422 |
Home Furnishings Stores |
| NAICS | 4452 |
Specialty Food Stores |
| NAICS | 4481 |
Clothing Stores |
| NAICS | 4482 | Shoe Stores |
| NAICS | 533110 | Lessors of Nonfinancial Intangible Assets* |
| SIC | 6794 | Patent Owners and Lessors* |
*NAICS/SIC codes in red indicate codes for franchisers (i.e. Subway / Domino's / Fitness World) - not for potential franchisees.
NAICS / SIC codes do not designate that a business is a franchise. As a potential franchisee, you can still use NAICS / SIC codes to research the specific industry of your chose franchise (i.e. fast food, retail clothing, personal services, etc.). Here are a selection of the most frequently franchised businesses.
Search or browse all NAICS or SIC codes on the NAICS Association website. Some NAICS codes are different in Canada — you can search by keyword or browse Canadian NAICS codes at Statistics Canada or Canadian Industry Statistics. To search for a SIC code using a NAICS code and vice versa, use the NAICS & SIC Crosswalks.
For more information about planning your industry research, including identifying your industry codes, check out the video tutorial for Module 3: Planning Your Industry Research.