Demographic Characteristics of Business Owners and Employees: 2013

the Office of Advocacy released Demographic Characteristics of Business Owners and Employees: 2013, the second annual issue brief on business owner demographics. This year’s issue brief also includes how business owners differ from employees. This comparison is important for measuring the overall economic well-being of the economy including the economic incentives for entrepreneurship.

The issue brief is available on Advocacy’s website here.

Annual Report of the Office of Economic Research, FY 2014

The Office of Advocacy has released the Annual Report of the Office of Economic Research, FY 2014. In fiscal year 2014, Advocacy produced 23 contract and internal research reports on a variety of topics including access to capital, employment, environment, minority-and women-owned businesses, procurement, retirement, taxation and veterans. This annual report provides details about and a link to each of OER's publications from FY 2014.

The full report can be found on Advocacy's website here.

Income and Net Worth of Veteran Business Owners over the Business Cycle, 1989–2010

This month, the Office of Advocacy is releasing a new research report, Income and Net Worth of Veteran Business Owners over the Business Cycle, 1989–2010. The report looks at the effects of two decades of economic expansion and recession on the economic fortunes of veterans and veteran small business owners. It finds that veteran small business owners did better than veterans who did not own small businesses during the 20-year-period. The economic extremes of the period 1989-2010—including the end of the longest U.S. economic expansion and the Great Recession—had similar effects on all business owners—veteran and non-veteran alike.

The report and research summary are available on Advocacy’s webpage.

2012 Small Business Profiles for States and Territories

The Office of Advocacy’s Small Business Profiles for the States and Territories supply data on small businesses in each of the 50 states and the District of Columbia... The usefulness of the publication is the great detail it provides about small businesses at the state level. The following topics are covered: the number of firms, demographics of business ownership, small business income, banking, business turnover, industry composition, and employment gains and losses by size of business.

Frequently Asked Questions about Small Business

Advocacy’s most requested publication, Frequently Asked Questions About Small Business, gathers dozens of the latest statistics about America’s small business in one place. The FAQ is updated annually, and it’s a convenient place to confirm facts like the total number of small businesses, their share of employment and net new jobs, plus starts, closures, and overall contribution to the U.S. economy.

Small Business Quarterly Bulletin

The Small Business Quarterly Bulletin [PDF] from Advocacy's Office of Economic Research is a brochure-style publication that contains commentary and analysis on the current employment and financing trends of small businesses.

Does the Bankruptcy Code Provide a Fresh Start To Entrepreneurs?

The U. S. bankruptcy system is designed to recover funds for creditors while giving bankrupt small businesses an opportunity for a “fresh start.” While a fresh start is a goal of the system, little analysis has been done to evaluate the ability of small firms to reset and thrive after bankruptcy. This paper attempts to fill that gap. The research finds that 2.6 percent of firms filed for bankruptcy within the previous seven years, that they are comparable to other firms in terms of cash flow and firm size, and that they have a 24 percent higher likelihood of being denied a loan and are charged interest rates that are 1 percent higher than those charged other firms.

The research summary can be found HERE.

Should you need further information, please feel free to contact Brian Headd at (202) 205-6533 or advocacy@sba.gov.

The State of Small Business

The 2010 edition of The Small Business Economy documents the 2008 recession’s effects on small business as well as the changing economy at the end of 2009. In 2009, after weathering a deep recession that began in late 2007, the American economy began to stabilize. For small businesses, one of the biggest remaining challenges was the lack of sales adequate to grow employment. Many economic indicators began to show improvement by year’s end.

For example, in the first three quarters of 2009, small businesses accounted for almost 60 percent of the net job losses, with the greatest losses in the first quarter. By the third quarter, net small firm job losses were one-third what they had been in the first quarter. The Congressional Budget Office estimated that the American Recovery and Reinvestment Act and other policy actions added between 1.5 percent and 3.5 percent to real gross domestic product in fourth quarter 2009 and projected an employment increase of 1.0 million to 2.1 million more than it would have been without the stimulus. In the first half of 2009, as the economy continued to experience the challenges that began in the last two quarters of 2008, credit markets were constrained by both demand and supply factors. In the midst of a challenging year for small business owners, there was reason for optimism as commercial bank profitability improved and nominal interest rates remained low.

The research summary can be found HERE.

H1N1 Preparedness Guide for Small Businesses

WASHINGTON— Small Business Administration Administrator Karen Mills and Department of Homeland Security Secretary Janet Napolitano announced the availability of a preparedness guide designed to assist small businesses in planning for the possibility of an H1N1 flu outbreak this fall.

"Small Business owners should take the time to create a plan, talk with their employees and make sure they are prepared for flu season," said Mills. "For countless small businesses, having even one or two employees out for a few days has the potential to negatively impact operations and their bottom line. A thoughtful plan will help keep employees and their families healthy, as well as protect small businesses and local economies."

Outbreaks of H1N1 flu are occurring now across the country and will likely coincide with the return of seasonal flu this fall and winter. The preparedness guide offers small business employers tools and information to help them plan for and respond flexibly to varying levels of severity of an H1N1 outbreak— which may lead to increased absenteeism, and, if the outbreak becomes more severe, may include restricted service capabilities and supply chain disruptions.

Employers are encouraged to put strategies in place now to protect their employees and their businesses in advance of the fall flu season. Included in the preparedness guide are tips on how to write a continuity of operations plan, steps for keeping employees healthy, frequently asked questions about the 2009 H1N1 flu and a list of additional resources that employers can access online.

To download the booklet please visit www.sba.gov/flu.

The Small Business Economy: A Report to the President 2008

The 2008 edition of The Small Business Economy documents the small business role in the economy of 2007 and includes chapters focusing on financing, procurement, international trade, small business training and development, tax policy, business creation, and regulation.

A copy of the report is located here and the research summary can be found here.

Should you need further information, please feel free to contact Chad Moutray at (202) 205-6533 or advocacy@sba.gov.

Small Business Profiles for the States and Territories

The latest edition of the Small Business Profiles for the States and Territories is now available. This new edition improves on previous years by providing more information in an easier-to-use format. A copy of the state profiles can be found here.

The profiles contain great detail about small businesses at the state level. They cover the 50 states, the District of Columbia, and the United States, and also provide limited data on the U.S. territories. The profiles show that small businesses are a significant part of every state economy, and they are important employers in every state. Small businesses employ 44% of the workforce in Florida (the low end of the range), and they employ 69.8% of Montana’s workforce (the high end); New York's number is 51.7%.

Do Business Definition Decisions Distort Small Business Research Results?

According to SBA: This working paper has two purposes. It presents special tabulations from the U.S. Census Bureau's Survey of Business Owners (SBO) to offer the public detailed information on businesses with and without employees and their owners (including owner age, home-based status, franchises and financing).
Second, the authors consider the characteristics of nonemployer and employer businesses. Their examination shows that research results based on data on nonemployers are not necessarily applicable to employers and vice versa.

A copy of the report is located here and the research summary can be found here.

Should you need further information, please feel free to contact Brian Headd or Radwan Saade at (202) 205-6533 or advocacy@sba.gov.

Changes in Family Health Insurance Coverage for Small and Large Firm Workers and Dependents

This study examines the 1996-2006 Annual Demographic Survey of the Current Population Survey (CPS) to determine if the decline in health insurance coverage at large firms has increased financial pressure on plans sponsored by small firms. The study tests whether spouses working for large firms and children previously covered through large firms have shifted to dependent coverage in group plans sponsored by small businesses.

A full copy of this report is available here and the research summary can be found here. Should you need further information, please feel free to contact Victoria Williams at (202) 205-6533 or advocacy@sba.gov.

Rural and Urban Establishment Births and Deaths

Rural and Urban Establishment Births and Deaths Using the U.S. Census Bureau’s Business Information Tracking Series presents an analysis of establishment birth and death rates by rural and urban counties. Surprisingly, the differences in the average rates of establishment births and deaths for urban and rural areas are extremely small. Therefore, the general dynamic of economic activities is not a function of rural versus urban conditions. Also, the underlying datasource of establishment births and deaths by county from 1990 to 2003 used in the paper is documented for future research use.

A full copy of this report is available here (PDF), and the research summary can be found here (PDF). If you need further information, please feel free to contact Brian Headd at (202) 205-6533 or advocacy@sba.gov.

Small Businesses Lead U.S. Growth

Report Documents Small Firms’ Significant Economic Impacts in 2006

WASHINGTON, D.C. – Small businesses continued to lead growth in the U.S. economy in 2006, according to a report issued last week by the Office of Advocacy of the U.S. Small Business Administration. The report "shows that overall, small firms continue to drive a resilient U.S. economy," said Advocacy Chief Economist Chad Moutray. "In releasing this annual small business research report, we are pleased also to showcase new research by economists in the field of small business and entrepreneurship." Moutray released the report at a December 19 meeting of the Rotary Club of Washington, DC. The study, The Small Business Economy: A Report to the President for 2007(PDF) is the Office of Advocacy’s annual report on the state of small business in America.

The report reviews the economic environment for small businesses in the year 2006, including the financial and federal procurement marketplaces. New research focuses on minority- and veteran-owned businesses, social entrepreneurship, and pre-venture planning. Other chapters and appendices provide data on small business and an update on Office of Advocacy initiatives. The Office of Advocacy, the "small business watchdog" of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information and a complete copy of the report, visit the Office of Advocacy website. Print copies are also available upon request to the Office of Advocacy (202) 205-6933.

Disaster Preparedness

"An estimated 25 percent of businesses do not reopen following a major disaster, according to the Institute for Business and Home Safety." Here's a link to the SBA/Nationwide Disaster Preparedness Guide.

"The 10-page guide provides information business owners need to develop an effective plan to protect customers and employees in the event of a disaster. The guide provides key disaster preparedness strategies to help small businesses identify potential hazards, create plans to remain in operation if the office is unusable, and understand the limitations of their insurance coverage."

Quarterly Indicators: The Economy and Small Business

The SBA Office of Advocacy released the Quarterly Indicators: The Economy and
Small Business for the third quarter of 2007. Among the trends that are
observed, real gross domestic product grew 3.9 percent in the third
quarter of 2007, much faster than anticipated and comparable to second
quarter growth. Strong growth in exports (assisted by a weak dollar) and
solid gains in consumer spending helped fuel the rise in output.
Meanwhile, unemployment rose slightly, to 4.7 percent in September from
4.5 percent in June, but the expanding economy generated 282,000 more jobs
than it lost.

In September, the Federal Reserve lowered its federal funds target rate by
0.5 percent. Interest rates paid by small businesses and consumers moved
in tandem. Many observers contend that the move was necessitated by credit
concerns in the financial markets related to sub-prime lending. In
addition, overall inflation remained under control, with the consumer
price index rising an annualized 1 percent and producer prices falling 0.5
percent. Year-to-year inflation figures show a more substantial increase.
Consumer prices, for example, rose 2.8 percent from September 2006 to
September 2007. One culprit is higher energy prices. The price of a barrel
of West Texas crude oil rose $12.45 in the quarter, averaging just below
$80 a barrel in September.

Quarterly Indicators: The Economy and Small Business is located here.

Small Business Growth: Searching for Stylized Facts

"Small Business Growth: Searching for Stylized Facts" is an Office of Advocacy working paper by Brian Headd and Bruce Kirchhoff. The authors analyzed data from special tabulations of the U.S. Census Bureau’s Statistics of U.S. Businesses (SUSB) database. The SUSB data provided information on how firms started, grew, merged, declined, survived, and closed from 1992 to 2002. The authors found that growing firms are generally a constant share of the economy with a minor business cycle effect, firms with employment growth outnumber firms with employment decline, and fast growing firms in a given year tend to revert to the mean in later years.

A full copy of this report is available here in a PDF, and the research summary can be found here (PDF). Should you need further information, please feel free to contact Brian Headd at (202)
205-6533 or advocacy@sba.gov.

SBA Dynamic Small Business Search

From Hill Library:

If you’ve ever used a service like InfoUSA or ZapData , you know how helpful it can be to generate a list of competitors or B2B prospects based on specific criteria. You also know how expensive it can be.

The Small Business Administration, it turns out, keeps tabs on a large group of businesses and provides access to these records at this site. Use the Dynamic Small Business Search site to bring up a list of businesses by state, county, NAICS code, ownership demographic, and all manner of other criteria.

These are companies that have shown interest in contracting with the government, so industry coverage will lean toward service and manufacturing. And not every company will be included, of course. Still, when the other option is a fistful of money, this company research tool isn’t too bad.

SBA Supports Census

On August 16, 2007, the Office of Advocacy sent a letter to the House Commerce, Justice, Science Appropriations Chairman and Ranking Member describing the unintended consequences of a proposed funding cut to the Census budget in the FY 2008 Commerce, Justice, Science Appropriations bill (H.R. 3093). If enacted, the cut would jeopardize the Survey of Business Owners and Self-Employed Persons (SBO), on which Advocacy and researchers depend to understand the contributions and challenges of small business.

A copy of Advocacy's letter may be found here and a fact sheet summarizing Advocacy's letter can be found here.

For more information about the Office of Advocacy, please visit the website or telephone 202-205-6533.