A Voice for Small Business
Small Business Economic Indicators for 2002
A reference guide to the latest data on small business activity, including state and industry data
June 2003
Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, D.C., support the Chief Counsel’s efforts. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call (202) 205-6533. Receive email notices of new Office of Advocacy information by signing up on Advocacy’s Listservs at http://web.sba.gov/list Advocacy Communications Advocacy Newsletter Advocacy Press Advocacy Research
Small Business Economic Indicators for 2002
A reference guide to the latest data on small business activity, including state and industry data
Office of Advocacy U.S. Small Business Administration Washington, D.C. June 2003
The full text of this report is available on the Office of Advocacy’s Internet site at http://www.sba.gov/advo/. Reprints in paper or microfiche are available for purchase from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161.
Federal Recycling Program Printed on recycled paper.
EXECUTIVE SUMMARY
After the economic contraction of 2001, the year 2002 began with little momentum. Negative stories dominated the economic news in 2002: corporate accounting scandals, the return of high energy costs, federal finances, looming military actions. This gloomy picture played itself out in lost confidence and declining equity markets. Nevertheless, the economy showed encouraging signs. Most notably, output (or GDP) continued to grow throughout the year. In addition, prices stayed relatively level, with inflation rising just 1.6 percent. Employment conditions, which are often viewed as lagging behind economic conditions, remained weak; about 1.5 million jobs in the nonfarm private sector were lost, and unemployment rose to 5.8 percent. Although reports were gloomy, 2002 may be remembered as the launch pad for expansion. By the fourth quarter of 2002, five consecutive quarters of real GDP increases had been recorded, a welcome turnabout from the contraction of 2001. There were some signs that the small firm sector began to recover from the hard knocks of 2001. The number of businesses that filed for bankruptcy decreased in 2002, proprietor’s income rose 4 percent, and self-employment rose throughout the year. Small businesses as a group remained cautious. Although many banks quit tightening their lending standards, demand for loans decreased as well. Caution was also apparent in the restrained growth of new employer firms—they rose only 0.9 percent over the previous year. Employer firm closures increased 2.9 percent, but this was only slightly higher than the average of the previous five years.
Small Business Economic Indicators for 2002
SMALL BUSINESS IN THE U.S. ECONOMY
To put the year that small business had in perspective, it is necessary to understand how small businesses fit into the U.S. economy.1 Why do small firms exist? Small business owners either enjoy the lifestyle (being their own boss), are trying to take advantage of a business opportunity, or both. To go into business, these owners must overcome various barriers to entry (obtaining start-up financing or machinery, complying with regulations, and so forth). To stay in business, they have to figure out how to offer goods and services at competitive prices. Many such firms remain small because of lifestyle choices, industry characteristics, or financial constraints. But in being small, owners can enjoy the business owner’s lifestyle while limiting losses and trying out new ideas, services, or products. When small firms develop new ideas, they help the economy evolve by providing more efficient uses of resources. In addition, this threat of new competition from potential entrants challenges established firms to become more efficient. Overall, small businesses are the stock from which large businesses emerge, the first job of many new workers, and the opportunity for their owners to achieve the American Dream. Small firms represent about 99 percent of employers, employ about half of the private sector workforce and are responsible for about two-thirds to three-quarters of the net new jobs. While small firms contribute substantially to the growth of the economy, the number of small firms does not change dramatically over time. This is because the process of growth and churning entails some small firms becoming large firms and some large firms shrinking into small ones.2
The Office of Advocacy often defines a small firm as one with fewer than 500 employees. Industry definitions are available from SBA’s Office of Size Standards (www.sba.gov/size). 2 Some large firms do shrink into small firms during a recession and then grow back into large firms; this is a relatively rare occurrence, however.
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Small Business Economic Indicators for 2002 2
SMALL BUSINESS IN THE YEAR 2002
The U.S. economy began to revive in 2002 after struggling in 2001. Real GDP increased 2.4 percent with inflation under control. These encouraging signs were dampened by a slower fourth quarter GDP increase (an annual rate of 1.4 percent) and private sector employment losses. (See Table I.) While the economy began to expand again, concerns about stagnant growth remained. The small business sector also showed signs of awakening after a lackluster 2001.3 A weak labor market often leads to rising selfemployment, a situation that occurred in 2002. In addition, the number of business bankruptcies declined slightly from the previous year, indicating that business casualties may have peaked. The increased economic optimism shown in the National Federation of Independent Business (NFIB) small business optimism index in 2002 was another sign of strength. (See Table II.) These positive economic signs suggest that a transition from economic contraction to expansion may have been taking place in 2002. It is not uncommon, however, for announcements of economic recovery to lag
2000 2001 Year 2002 Quarter 4 3 2 1 4 3 2 1 4 3 2 1 2000 2001 Year 2002 Table I: Output and Employment, 2000 – 2002 Quarter 4 3 2 1 4 3 2 1 4 3 2 1 Real GDP (Billions of 1996 dollars) 9,520 9,486 9,392 9,363 9,249 9,186 9,193 9,230 9,244 9,219 9,206 9,097 NonfarmPrivate Employment (thousands) 109,434 109,574 109,505 109,594 110,034 111,385 111,711 111,886 111,669 111,083 110,725 110,195
Note: Employment is seasonally adjusted. Source:U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of Economic Analysis; and U.S. Department of Labor, Bureau of Labor Statistics. Table II: Small Business Indicators, 2000 – 2002 SelfEmployment (thousands) 10,006 9,765 9,535 9,296 9,721 9,983 9,943 9,678 9,699 10,095 10,046 9,788 Business Bankruptcies 38,540 39,091 39,201 39,845 40,099 38,490 37,135 35,992 35,472 36,065 36,910 38,109 NFIB Optimism Index (86=100) 100.4 99.5 102.2 100.8 96.3 98.5 98.4 96.5 99.4 101.1 100.5 103.6
Note: Self-employment figures are based on a monthly average of primary self-employed. Bankruptcies are 12-month figures based on the ending quarter. Source:U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Labor, Bureau of Labor Statistics; Administrative Office of the U.S. Courts; and National Federation of Independent Business, Small Business Economic Trends.
Data that distinguish between the growth of small and large firms is only available from the U.S. Census Bureau with a lag of a few years, making it difficult to evaluate the current situation. However, when the economy gained momentum after the previous downturn in the early 1990s, firms with fewer than 500 employees increased their net employment in the first year after the recession, while large firms continued to shrink.
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Small Business Economic Indicators for 2002 3
behind the actual turnaround because of data delays. For example, the National Bureau of Economic Research announced the end of the recession of the early 1990s twenty-one months after the fact.
The Number of Businesses and Turnover In 2002, there were 22.9 million businesses in the United States. These consisted of both non-employer and employer businesses, which often react differently to the same economic stimuli. This proved to be the case in 2002, as the number of non-employers tended to rise while employer firms showed a slight decline.4 Although the annual self-employment figure dropped 1.8 percent from 2001 to 2002 (continuing a recent trend), it increased from the first quarter through the fourth quarter.5 Sole proprietorships rose 2.9 percent in 2002, to 18.4 million.6 Data from the U.S. Department of Labor’s Employment and Training Administration show decreases in the number of employers in 2001 and 2002.7 Negative territory had not been seen since 1991. Using data from the Department of Labor and Census Bureau, the Office of Advocacy estimates that there were 5.6 million employers in 2002. (See Table 2.) The 2002 decline in the number of employers is the result of an estimated 550,100 employer firm births and 584,500 employer terminations. However, the number of new employer firms rose this past year after a decline in 2001—an encouraging reversal. (See Table 3.) Business Bankruptcies While personal bankruptcies reached a new record in 2002, business bankruptcies declined by 38,155, or 3.9 percent, from 2001. This decline is another signal that small businesses as a group may be beyond the worst.
In a downturn, one would expect the number of non-employers to increase as job opportunities are not as prevalent and/or lucrative as they are in better times. These “one-person shops” can also fill niche markets left open by firms that are cutting back. The number of employer firms, on the other hand, would likely decrease in a downturn as existing non-employers would struggle to grow into employers and existing employers would struggle to stay afloat. 5 Non-employers are best measured by the U.S. Census Bureau, but this data is available with a lag of a few years. See http://www.sba.gov/advo/stats/data.html or http://www.census.gov/epcd/nonemployer/. 6 Small differences among self-employment (a measure of the monthly average by primary occupation) and sole proprietorships (a tax status) are to be expected, but it is unclear why self-employment has been declining in recent years while sole proprietorships have been increasing. 7 Employers are also best measured by the U.S. Census Bureau but similar to non-employers, the data has a lag of a few years. See http://www.sba.gov/advo/stats/data.html or http://www.census.gov/csd/susb/susb.htm.
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Small Business Economic Indicators for 2002 4
It is not surprising to see business bankruptcies down with sales essentially up and costs essentially under control. Retail and wholesale sales were both up from the previous year, and manufacturing was essentially flat after a large loss in 2001. Compensation, which is a proportionately large cost to small firms as they are often labor intensive, rose 2.1 percent and interest rates were down. As frequently happens in economic downturns, industrial cuts (including plant or entire firm closings) may have removed inefficient operations, thus increasing productivity. Financing The combined trends of tightened bank lending standards and decreased demand for loans by small businesses, which emerged in the late 1990s, continued into 2002. The rate of bank tightening and weakened demand decreased in early 2002 only to pick up again near the end of 2002. Overall, bank commercial and industrial loans declined 6.5 percent compared to the previous year. Small firms that did acquire loans during 2002 likely enjoyed low interest rates. Because of the Federal Reserve Bank’s action in late 2002 to lower the federal funds rate, the prime rate dropped to 4.25 percent, a level not seen in many readers’ lifetimes. Equity Markets Bank financing is very important to new and very small business. Growing businesses and larger ones often depend on equity financing. The equity markets continued to struggle in 2002, as they had for the previous three years, as markets retreated to their levels of about six years ago. The markets may have bottomed out, as the Standard & Poor’s and NASDAQ indexes both grew during fourth quarter 2002. Employment Trends Employment news remained gloomy, since strong firms and finances are needed for hiring. Economic reviewers have pointed out, in referring to the current state of the U.S. economy, that employment gains generally lag behind other indicators.8 This was borne out by the numbers in 2002. Unemployment rose by about one percentage point to 5.8 percent. This represented a decline of 1.5 million private sector jobs.
Employment in manufacturing, services, and retail trade tend to drive the overall employment figures, since these three major industries represent about three-quarters of private employment. (See Table 11.) Manufacturing lost 1 million jobs in 2002, and employment in this sector dropped below 17 million for
8
See http://www.nber.org/cycles/recessions.html.
Small Business Economic Indicators for 2002 5
the first time since 1963. This decline is the result of a longer term trend, independent of economic performance in 2002. Manufacturing employment peaked in 1979 and has declined ever since. Real manufacturing output has increased since the 1960s due to continuous productivity gains. Jobs lost in manufacturing were more than made up for by the boom in the service industry and the information revolution of the last decades of the 20th century. Although service sector employment continued to grow in 2001 and 2002, the effects of the recent slowdown are actually more serious in this sector. During the 1990s, the service sector added an average of 1.2 million jobs per year. Over the last two years, however, it has added only 0.2 million new jobs per year, on average. This recent increase was the result of health services. The economy’s current employment struggles appear to be a product of the stalled information revolution, rather than of shortterm manufacturing woes. The employment level in retail trade in 2002 fell below the level in 2000. In fact, struggles were widespread; only three of the nine major industry groups—agricultural services; FIRE (finance, insurance, and real estate); and services—had employment gains in 2002. Needless to say, laid-off workers and new labor force entrants who were unable to find work in 2002 met with a tough job market. But even with overall employment declining, wages and benefits rose in 2002. Insurance—A Small Business Challenge in 2002 According to the National Federation of Independent Business, taxes were the leading small business problem entering 2002 and the cost/availability of insurance (mainly health) led by the end of the year. Insurance cost and availability was hit hard by the increasing threat of terrorism and accelerating healthcare costs.9 The Employee Benefit Research Institute conducted a survey that showed that small firms were trying to deal with the health insurance problem by passing on costs to employees.10 Small firms’ insurance decisions were highly price sensitive, and small businesses tended to respond to price increases by changing or dropping coverage. The survey also showed that about one-third of those not offering coverage could be enticed to do so through lower costs.
9
10
National Federation of Independent Business, Small Business Economic Trends, February 2002; January 2003. Paul Fronstin and Ruth Helman, Small Employers and Health Benefits: Findings From the 2002 Small Employer Health Benefits Survey, Employee Benefits Research Institute, January 2003.
Small Business Economic Indicators for 2002 6
Conclusion The most reliable economic indicators of the start of an economic upturn are the consistent expansion of output and the improved financial situation for firms. Nonfarm sole proprietors’ income increased 4.9 percent, and corporate profits increased 7.6 percent, giving owners the finances and confidence to expand their firms. This provided momentum and optimism for the struggling U.S. economy as it entered 2003.
Small Business Economic Indicators for 2002 7
INTRODUCTION TO THE DATA
This report presents the status of small firms in 2002 and makes current data on small firms more accessible to the public, policymakers and researchers. It lists the number of businesses, new employer firms, business terminations, bankruptcies, and lending terms and standards for 2002 and years prior. Because very little current economic data has been collected that distinguishes between small and large firms, estimates and proxies are often used. For instance, the total number of U.S. businesses is used as an indicator of the number of small businesses since more than 99 percent of all U.S. firms are small! (In fact, 99.7 percent of America’s 5.7 million employer firms in 2000 had fewer than 500 employees.) Consequently, data that are based on the number of firms indicate small business status. Data on the financial side are not disaggregated by firm size, and small firms represent only about half of the financial totals, making financial indicators difficult to interpret.
Small Business Economic Indicators for 2002 8
DATA TABLES
This report’s thirteen tables provide a wealth of data to show the status of small firms in 2002. Below is a description of each table. Where appropriate, information is shown at the state or industry level, as well as the national macroeconomic level. Table 1 Macroeconomic Indicators, 1990–2002.................................................................................. 11 This table uses national figures to indicate how the overall economy performed in 2002. Table 2 Indicators Related to Small Business, 1990–2002 ................................................................ 12 Table 2 highlights the economywide indicators that show small businesses status in 2002. Table 3 U.S. Business Measures, 1980–2002 ...................................................................................... 13 Although current variables are important, Table 3 captures the long-term trends of indicators related to small firms. This table is particularly important in showing how variables react to business cycles and how the economy is evolving over time. Table 4 Number of Employer Firms by State, 1990–2002 ................................................................ 14 Changes in the number of employer firms can be indicative of economic conditions. Table 5 Number of Self-Employed by State, 1990–2002 ................................................................... 15 The self-employed are the stock from which employer firms emerge, and self-employment provides individuals the ultimate in labor force empowerment. Table 6 Employer Firm Formation and Termination Rates by State, 2002 .................................... 16 Business turnover rates, formation, and termination show the speed with which the economy cycles through new and old ideas. Table 7 Employer Firm Births by State, 1990–2002 .......................................................................... 17 Business formation figures and employer firm births show the changing level of the spirit of creation in the U.S. economy. Table 8 Employer Firm Terminations by State, 1990–2002 ............................................................. 18 Business closure figures and employer firm terminations show the loss of existing ventures, which also frees up of resources for new ventures. Table 9 Business Bankruptcies by State, 1990–2002 ......................................................................... 19 Business bankruptcy is where business struggles meet financial obligations. Risks need to be balanced with rewards for creditors, and changes in business bankruptcies may indicate this balance. Table 10 Financial Information by State, 2001–2002 .......................................................................... 20 The financial bottom line is the final indicator of business accomplishment. Proprietors’ income shows the returns for the smallest of firms, and wages are indicator of the biggest cost for small firms. Table 11 Non-farm Private Employment by Industry, 2001–2002 .................................................... 21
Small Business Economic Indicators for 2002 9
Although current industry employment by firm size is not available, employment changes for industries that have a high proportion of small firm employment is a useful guide to small firm employment status. Table 12 Industry Comparisons, 2001–2002 ........................................................................................ 27 The economy often grows and shrinks in an uneven fashion. The growth and decline of various industries can indicate the status of small and large firms’ labor levels. Table 13 Bank Lending Information by Size of Firm, 1991–2002 ..................................................... 28 Financing is the lifeline for many small firms. This table illustrates the availability and demand for credit for small firms.
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Table 1 Macroeconomic Indicators, 1990 - 2002 Percent Change 2001-2002 3.6 2.4 4.5 (1.1) 1.6 3.1 1.7 4.9 (32.1) 7.6 2.6 (1.9) 4.7 (1.3) 23.4 3.2 2.7 4.7 (6.5) (32.4) (8.2) 1.1 (16.5) (6.9) 7.9 -1.6 (1.4) 1.1
1990 Gross Domestic Product (GDP) (billions of dollars) (1) Current dollars Constant dollars (billions of 1996 dollars) Personal consumption expenditures Sales (billions of dollars) (2) Manufacturing Wholesale trade Retail trade Income (billions of dollars) Compensation of employees (3) Nonfarm proprietors' income Farm proprietors' income Corporate profits (4) Output and productivity (business sector indexes, 1992=100) Output Hours of all persons worked Productivity (output per hour) Employment and compensation Nonfarm private employment (millions) (3) Unemployment rate (percent) Total compensation cost index (Dec.) (June 1989=100) Wage and salary index (Dec) (June 1989=100) Employee benefits cost index (Dec.) (June 1989=100) Bank loans, interest rates, and yields Bank commercial & industrial loans (billions of dollars) Prime rate (percent) U.S. Treasury 10-year bond yields (percent) 5,803.2 6,707.9 3,831.5 242.7 149.5 153.7 3,351.0 349.9 31.1 408.6 98.6 102.6 96.1 91.1 5.6 107.0 106.1 109.4 641.2 10.01 8.55
1995 7,400.5 7,543.8 4,969.0 284.5 176.2 188.2 4,202.5 475.5 22.2 668.8 111.5 108.7 102.6 97.9 5.6 126.7 123.1 135.9 724.2 8.83 6.57 638.7 426.4 1,351.8 1,515.8 (164.0) 152.4 127.9 98.1
2000 9,824.6 9,191.4 6,683.7 343.7 228.5 254.9 5,723.4 692.2 22.6 788.1 140.0 119.7 116.9 111.0 4.0 150.9 147.7 158.6 1,088.3 9.23 6.03 957.2 761.4 2,025.2 1,788.8 236.4 172.2 138.0 106.9
2001 10,082.2 9,214.5 6,987.0 324.8 225.7 264.0 5,874.9 708.8 19.0 731.6 139.8 118.2 118.2 111.0 4.7 157.2 153.3 166.7 1,031.3 6.91 5.02 794.2 287.8 1,991.2 1,863.9 127.3 177.1 140.7 109.4
2002 10,446.2 9,439.9 7,303.7 321.3 229.3 272.2 5,977.4 743.7 12.9 787.4 143.5 115.9 123.8 109.5 5.8 162.3 157.5 174.6 964.2 4.67 4.61 802.9 240.3 1,853.2 2,011.0 (157.8) 179.9 138.8 110.7
Investments by nonfarm nonfinancial corporate business (billions of dollars) Capital expenditures 387.8 Change in financial assets 131.5 Federal budget (billions of dollars, fiscal year) Receipts Outlays Surplus or deficit ( ) Price indices (inflation measures) Consumer price index (urban) (1982-84 = 100) Producer price index (finished goods) (1982 = 100) GDP implicit price deflator (1996 = 100) 1,032.0 1,253.2 (221.2) 130.7 119.2 86.5
(1) Small Business Share of Private, Nonfarm Gross Domestic Product by Joel Popkin and Company (Office of Advocacy funded study) estimates small businesses (fewer than 500 employees) created 52 percent of the total nonfarm private output in 1999. (2) U.S. Census Bureau, Statistics of U.S. Business, showed that in 1997, small firms (fewer than 500 employees) accounted for 24.8 percent of manufacturing, 52.6 percent of retail, 46.8 percent of wholesale sales. (3) Statistics of U.S. Businesses, Bureau of the Census, showed that in 2000, small firms accounted for 44.5 percent of annual payroll, and 50.1 percent of total nonfarm private employment. (4) With inventory valuation adjustment and capital consumption adjustments. Source: U.S. Small Business Administration, Office of Advocacy, from the Bureau of Economic Analysis, and Economic Indicators , March 2000 and March 2003.
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Table 2 Indicators Related to Small Business, 1990 - 2002 Percent Change 2001-2002
1990
1995
2000
2001
2002
Number of businesses (1) Employer firms (nonfarm) (2) 5,073,795 5,369,068 5,652,544 5,629,600 e. 5,595,200 e. Self-employment (unincorporated) 10,097,000 10,482,000 9,907,000 9,826,000 9,650,000 Business tax returns (nonfarm) 20,219,400 22,555,200 25,106,900 25,631,200 e. 26,363,800 e. Sole proprietor tax returns (nonfarm 14,149,000 16,157,000 17,570,500 17,904,900 18,389,000 Business turnover Employer firm births (2) Employer firm terminations (2) Bankruptcies Income (billions) Wage and salary income Proprietors' income Federal corporate taxes State and local corporate taxes
(0.6) (1.8) 2.9 2.7
584,892 531,400 63,912
594,369 497,246 50,516
574,300 542,831 35,219
545,400 e. 568,300 e. 39,719
550,100 e. 584,500 e. 38,155
0.9 2.9 (3.9)
2,754.6 381.0 118.1 22.5
3,424.7 497.7 179.3 31.7
4,836.3 714.8 223.8 35.6
4,950.6 727.9 170.2 29.1
5,023.9 756.9 NA NA
1.5 4.0 NA NA
(1) Self-employment presented here represents individuals whose primary occupation is self-employment and they may or may not have employees. Note that some businesses file more than one tax return. (2) Birth and terminations for 2001 and 2002 are estimated from 2000 data from the Bureau of the Census, yearly percent changes in similar data provided by the Department of Labor, Employment and Training Administration and rounded. Births and terminations are from prior year's March through current year's March. Employer firm estimates are the previous year figure plus the difference between birth and termination estimates. Sources: U.S. Small Business Administration, Office of Advocacy, from data provided by the Bureau of the Census, Bureau of Labor Statistics, Employment and Training Administration, Bureau of Economic Analysis and Administrative Office of the U.S. Courts.
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Table 3 U.S. Business Measures, 1980 - 2002
Real GDP (billions 96$) 9,440 9,215 9,191 8,859 8,509 8,160 7,813 7,544 7,348 7,063 6,880 6,676 6,708 6,592 6,368 6,113 5,912 5,717 5,505 5,132 4,919 5,021 4,901 Employer Firms 5,595,200 e. 5,629,600 e. 5,652,544 5,607,743 5,579,177 5,541,918 5,478,047 5,369,068 5,276,964 5,193,642 5,095,356 5,051,025 5,073,795 5,021,315 4,954,645 NA NA NA NA NA NA NA NA Establishments (a) NA NA 7,070,048 7,008,444 6,941,822 6,894,869 6,738,476 6,612,721 6,509,065 6,401,233 6,319,300 6,200,859 6,175,559 6,106,922 6,016,367 5,937,061 5,806,973 5,701,485 5,517,715 5,306,787 4,633,960 4,586,510 4,543,167 Self Emp. Self Emp. Nonfarm Bus. Nonfarm sole (000) Rate (%) Tax Returns props. 9,650 9,826 9,907 10,087 10,303 10,513 10,490 10,482 10,648 10,280 9,960 10,274 10,097 10,008 9,917 9,624 9,327 9,269 9,338 9,143 8,898 8,735 8,643 6.7 6.8 6.9 7.2 7.5 7.7 7.8 7.9 8.1 8.0 7.8 8.1 8.0 8.1 8.2 8.0 7.9 8.0 8.2 8.2 8.1 8.0 8.1 26,363,800 25,631,200 25,106,900 24,750,100 24,285,900 23,857,100 23,115,300 22,555,200 22,191,000 20,874,796 20,476,775 20,498,855 20,219,400 19,560,700 18,619,400 18,351,400 17,524,600 16,959,900 16,077,000 15,245,000 14,546,000 13,858,000 13,021,600 18,389,000 17,904,900 17,570,500 17,377,100 17,183,700 17,176,000 16,955,000 16,424,000 16,154,000 15,848,000 15,495,000 15,181,000 14,783,000 14,298,000 13,679,000 13,091,000 12,394,000 11,929,000 11,262,000 10,704,000 10,106,000 9,585,000 8,932,000 Employer Births 550,100 e. 545,400 e. 574,300 579,609 589,982 590,644 597,792 594,369 570,587 564,504 544,596 541,141 584,892 NA NA NA NA NA NA NA NA NA NA Employer Business Terminations Bankruptcies 584,500 e. 568,300 e. 542,831 544,487 540,601 530,003 512,402 497,246 503,563 492,651 521,606 546,518 531,400 NA NA NA NA NA NA NA NA NA NA 38,155 39,719 35,219 37,639 44,197 53,819 53,200 50,516 50,845 62,399 69,848 70,605 63,912 62,449 62,845 81,463 79,926 70,644 64,211 62,412 69,242 48,086 43,252
Year 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980
NA = Not Available (a) Units with paid employees in the fourth quarter through 1983. 1984 on includes units active in any quarter of the year. Sources: U.S. Small Business Administration, Office of Advocacy, from data provided by sources below: Real Gross Domestic Product (GDP) from the Bureau of Economic Analysis. Employer firms, births and terminations from the U.S. Census Bureau with estimates for 2001 and 2002 (see Table 4 for details). Establishments from the U.S. Census Bureau. Self employment (unincorporated, primary occupation) from the Bureau of Labor Statistics. The self employment rate is based on the civilian labor force. Nonfarm business tax returns and nonfarm sole proprietors from the Internal Revenue Service. Bankruptcies from the Administrative Office of the U.S. Courts (business bankruptcy filings).
Small Business Economic Indicators 13
Table 4 Number of Employer Firms by State, 1990 - 2002
State United States Yearly Change (%) Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Puerto Rico 1990 5,073,795 -80,289 13,176 79,109 49,066 767,697 89,419 95,132 18,368 20,865 311,377 142,831 26,588 26,209 248,675 109,077 61,956 58,573 71,381 80,449 33,676 112,823 151,995 178,726 100,061 45,781 126,548 23,867 39,785 28,423 32,921 204,807 33,767 491,566 134,990 17,766 207,701 64,901 77,338 233,679 27,806 70,624 18,888 93,666 318,352 32,687 18,986 128,895 134,944 35,098 103,039 15,059 -1995 5,369,068 -83,038 15,214 91,244 56,649 764,169 109,695 93,135 21,554 24,161 343,017 160,715 26,775 33,326 265,927 119,805 66,350 63,374 76,970 87,371 34,431 122,202 153,829 203,374 112,477 49,089 123,007 27,499 42,332 34,951 34,584 209,145 38,640 488,360 149,462 18,467 223,751 70,722 92,717 236,746 30,430 77,822 20,905 104,633 360,735 42,358 19,681 147,710 162,525 37,900 115,278 17,219 -2000 5,652,544 0.8 88,222 16,190 103,893 59,431 939,979 134,085 96,344 24,782 26,157 385,113 189,156 28,112 39,089 278,754 124,654 68,970 67,461 88,460 96,441 38,711 130,628 167,740 213,865 128,943 53,509 128,319 32,593 44,699 44,741 39,643 265,758 41,535 471,808 172,661 18,637 232,755 74,554 99,521 259,492 32,666 88,668 22,556 110,510 388,439 51,940 20,976 160,988 194,977 38,665 121,850 18,566 50,645 2001 5,629,600 e. (0.4) 86,007 16,398 106,680 59,757 985,846 138,411 96,916 25,199 26,312 392,756 192,736 28,569 40,459 279,627 125,119 68,704 67,197 88,138 95,829 38,907 132,049 170,026 212,608 130,348 53,303 129,404 32,891 45,019 46,339 39,542 277,425 41,616 473,471 175,461 18,544 232,266 75,177 99,943 265,451 33,011 89,300 22,759 109,376 390,390 54,461 21,247 162,459 199,233 37,805 122,051 19,141 51,164 2002 5,595,200 e. (0.6) 85,895 16,511 107,894 60,668 1,022,192 140,704 96,677 25,097 26,503 413,476 194,062 28,800 40,633 278,839 124,673 68,466 67,757 87,589 93,989 39,180 133,536 173,896 211,567 131,646 53,409 129,777 33,339 45,342 47,340 39,211 274,966 42,066 474,425 178,560 18,639 230,705 75,250 100,726 268,723 32,295 89,634 22,803 108,928 394,303 56,346 20,755 165,185 200,909 37,364 122,249 19,339 50,228 (0.1) 0.7 1.1 1.5 3.7 1.7 (0.2) (0.4) 0.7 5.3 0.7 0.8 0.4 (0.3) (0.4) (0.3) 0.8 (0.6) (1.9) 0.7 1.1 2.3 (0.5) 1.0 0.2 0.3 1.4 0.7 2.2 (0.8) (0.9) 1.1 0.2 1.8 0.5 (0.7) 0.1 0.8 1.2 (2.2) 0.4 0.2 (0.4) 1.0 3.5 (2.3) 1.7 0.8 (1.2) 0.2 1.0 (1.8) 36 25 12 9 2 8 37 41 22 1 26 20 28 38 40 39 19 44 49 24 13 4 43 17 32 30 10 23 5 46 47 14 31 6 27 45 35 21 11 50 29 33 42 16 3 51 7 18 48 34 15 -Ann. percent change Rank
Notes: State data is from the Department of Labor and U.S. data 1990 - 2000 is from the U.S. Census Bureau. State totals do not add to the U.S. figure as firms can be in more than one state. U.S. 2001 and 2002 estimates are based on U.S. Census Bureau and Department of Labor Employment and Administration data. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Labor (ETA) and U.S. Census Bureau.
Small Business Economic Indicators 14
Table 5 Self-Employment by State, 1990 - 2002
(thousands) State United States Yearly Change (%) Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 1990 10,097 -140 31 148 127 1,453 158 113 18 17 475 231 44 59 382 193 191 138 163 171 76 131 222 270 243 95 209 59 111 45 49 243 87 569 275 51 337 175 170 405 33 121 59 196 712 74 43 230 265 48 212 27 1995 10,482 -140 36 153 111 1,532 164 123 21 13 468 242 54 79 384 227 189 134 145 150 81 143 238 298 270 82 246 69 122 52 63 227 90 546 263 53 374 160 172 421 24 111 61 221 836 70 39 235 252 52 218 32 2000 9,907 (1.7) 144 29 156 87 1,505 183 123 22 14 438 248 47 65 332 198 140 108 136 135 80 159 207 297 216 106 194 64 97 47 61 198 73 541 291 42 343 154 193 379 23 121 49 217 817 75 35 198 226 46 220 31 2001 9,826 (0.8) 123 27 170 102 1,489 169 119 19 14 444 230 45 70 335 185 141 100 141 131 70 154 219 301 246 98 211 59 100 51 51 208 66 527 270 40 352 163 162 405 24 117 53 216 824 75 32 166 228 45 212 30 2002 9,650 (1.8) 119 28 153 98 1,478 167 122 17 12 447 251 49 64 343 188 131 116 131 130 64 161 207 289 236 106 199 59 93 52 55 197 72 536 253 39 318 144 150 375 25 109 49 236 803 67 37 178 222 45 206 26 (3.2) 3.3 (10.5) (3.7) (0.7) (1.2) 3.0 (11.1) (16.6) 0.6 8.9 8.6 (8.1) 2.4 1.5 (7.3) 15.8 (6.9) (1.2) (9.8) 4.6 (5.4) (4.2) (4.2) 8.3 (5.7) 0.1 (6.4) 2.2 8.3 (5.0) 9.3 1.6 (6.1) (3.4) (9.6) (11.6) (7.4) (7.6) 4.0 (6.8) (6.3) 9.3 (2.5) (10.8) 14.9 6.9 (2.6) (0.2) (2.7) (14.7) 27 12 46 29 21 23 13 48 51 18 5 6 43 14 17 40 1 39 22 45 10 33 30 31 7 34 19 37 15 8 32 3 16 35 28 44 49 41 42 11 38 36 4 24 47 2 9 25 20 26 50 Ann. percent change Rank
Notes: Primarily self-employed and unincorporated. Some years figures are directly from the Bureau of Labor Statistics (BLS) and other years the figures are from the Current Population Survey microdata and adjusted to match the BLS U.S. figure. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the Current Population Survey, a joint U.S. Census Bureau and Bureau of Labor Statistics project.
Small Business Economic Indicators 15
Table 6 Employer Firm Formation and Termination Rates by State, 2002
Firms at the Beginning of 2002 5,629,600 e. 86,007 16,398 106,680 59,757 985,846 138,411 96,916 25,199 26,312 392,756 192,736 28,569 40,459 279,627 125,119 68,704 67,197 88,138 95,829 38,907 132,049 170,026 212,608 130,348 53,303 129,404 32,891 45,019 46,339 39,542 277,425 41,616 473,471 175,461 18,544 232,266 75,177 99,943 265,451 33,011 89,300 22,759 109,376 390,390 54,461 21,247 162,459 199,233 37,805 122,051 19,141 Rate of Firm Formations Percent Rank 9.8 11.2 13.8 13.4 9.0 13.3 18.3 9.0 12.8 15.8 18.5 14.9 12.4 12.5 9.8 10.8 8.2 10.0 9.7 10.2 11.4 15.6 12.8 10.7 10.5 11.7 12.6 10.9 9.7 19.0 11.5 10.8 12.7 12.6 13.1 7.3 9.6 11.6 13.2 12.0 10.9 11.5 6.1 14.6 13.8 19.2 11.0 13.2 18.9 10.4 10.0 11.9 31 10 12 47 13 5 48 17 6 4 8 23 22 43 35 49 41 45 40 30 7 18 37 38 26 20 34 44 2 28 36 19 21 16 50 46 27 15 24 33 29 51 9 11 1 32 14 3 39 42 25 Rate of Firm Terminations Percent Rank 10.4 14.1 15.5 16.5 7.5 15.9 7.5 11.7 15.4 15.1 13.3 16.3 14.0 17.4 11.5 12.9 10.9 10.2 13.2 15.0 13.0 15.8 12.1 12.7 9.9 13.4 16.7 13.5 11.6 18.7 13.7 11.4 19.1 13.4 12.6 10.2 10.4 11.9 14.8 13.5 15.1 12.9 9.2 15.1 14.9 20.7 16.5 12.5 20.5 14.8 11.2 15.1 22 12 7 50 10 51 39 13 15 29 9 23 5 41 32 44 46 30 18 31 11 37 34 48 28 6 25 40 4 24 42 3 27 35 47 45 38 20 26 17 33 49 16 19 1 8 36 2 21 43 14
State U.S. Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
Notes: See Table 4 notes. On occasion, some state terminations result in successor firms which are not listed as new firms, thus making terminations higher than formations for most states. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Census Bureau and U.S. Department of Labor (ETA).
Small Business Economic Indicators 16
Table 7 Employer Firm Births by State, 1990 - 2002
State U.S. Total Yearly Change (%) Opening Rate (%) Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 1990 584,892 ----9,260 2,688 9,832 6,484 139,146 11,962 9,399 2,083 3,226 48,391 22,309 3,585 3,853 27,952 10,993 5,526 6,716 7,730 8,321 3,978 18,923 14,697 16,804 11,525 5,620 13,336 2,295 4,143 4,934 4,278 24,610 4,721 54,781 19,652 1,392 20,286 8,069 15,504 26,125 2,900 9,913 2,026 17,297 49,419 4,662 2,183 19,856 29,322 4,231 10,307 1,879 1995 594,369 ----9,140 2,521 12,044 7,042 127,074 19,703 9,395 2,783 3,250 54,006 24,478 3,874 5,053 30,393 14,355 6,103 7,600 9,078 9,817 4,476 18,458 16,040 23,972 12,178 6,185 14,935 3,377 3,895 7,151 4,988 27,106 4,837 54,620 21,650 1,631 27,046 8,790 13,770 23,820 3,290 10,447 1,858 15,823 52,871 7,742 2,139 19,433 30,243 4,425 12,342 2,230 2000 574,300 (0.9) 10.2 10,067 2,333 15,175 4,680 167,047 25,462 9,910 3,682 4,472 59,912 28,925 3,745 5,829 28,875 14,112 5,668 6,483 8,637 10,468 5,135 20,539 18,640 23,760 13,906 6,439 13,996 4,418 4,441 8,587 4,677 27,885 e. 5,836 61,507 23,310 1,493 22,290 8,979 14,729 35,104 3,675 11,114 2,138 15,793 54,330 9,875 2,511 22,219 40,357 4,177 12,436 2,314 2001 545,400 e. (5.0) 9.6 10,060 2,438 14,541 3,990 128,885 24,730 9,074 3,352 4,090 60,370 23,211 3,811 5,534 28,426 13,903 5,659 7,026 8,713 9,816 4,667 20,072 18,166 23,060 12,700 6,164 14,360 3,608 4,419 8,864 4,398 36,747 5,753 62,730 22,436 1,419 22,951 9,940 13,246 33,497 3,547 11,372 1,953 16,488 53,271 10,745 2,226 21,371 39,641 3,691 12,025 2,558 2002 550,100 e. 0.9 9.8 9,599 2,270 14,291 5,381 130,840 25,290 8,726 3,223 4,157 72,720 28,756 3,555 5,039 27,342 13,530 5,660 6,703 8,526 9,810 4,428 20,576 21,725 22,799 13,683 6,256 16,337 3,569 4,372 8,826 4,562 29,916 5,281 59,571 22,950 1,356 22,379 8,702 13,160 31,939 3,597 10,266 1,389 15,982 54,009 10,431 2,331 21,438 37,562 3,944 12,172 2,275 (4.6) (6.9) (1.7) 34.9 1.5 2.3 (3.8) (3.8) 1.6 20.5 23.9 (6.7) (8.9) (3.8) (2.7) 0.0 (4.6) (2.1) (0.1) (5.1) 2.5 19.6 (1.1) 7.7 1.5 13.8 (1.1) (1.1) (0.4) 3.7 (18.6) (8.2) (5.0) 2.3 (4.4) (2.5) (12.5) (0.6) (4.7) 1.4 (9.7) (28.9) (3.1) 1.4 (2.9) 4.7 0.3 (5.2) 6.9 1.2 (11.1) 37 44 27 1 14 12 34 35 13 3 2 43 46 33 30 20 38 28 21 41 10 4 26 6 15 5 25 24 22 9 50 45 40 11 36 29 49 23 39 16 47 51 32 17 31 8 19 42 7 18 48 Ann. percent change Rank
Notes: See Table 4 notes. On occasion, some state terminations result in successor firms which are not listed as new firms. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Labor (ETA) and U.S. Census Bureau.
Small Business Economic Indicators 17
Table 8 Employer Firm Terminations by State, 1990 - 2002
State U.S. Total Yearly Change (%) Closing Rate (%) Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 1990 531,400 ----10,927 3,382 14,235 7,252 135,767 12,864 11,994 1,422 3,715 54,009 24,448 3,385 3,337 29,173 10,632 6,971 8,788 11,276 10,883 4,737 17,945 17,539 28,676 13,614 7,200 16,674 3,453 6,144 4,888 6,018 25,538 4,943 63,627 21,643 2,265 23,863 9,397 11,921 27,929 3,863 10,736 2,370 18,902 53,831 5,774 2,687 21,438 23,087 4,408 11,591 2,900 1995 497,246 ----10,968 2,530 15,431 4,872 152,945 17,933 11,619 3,193 3,302 52,467 23,161 3,953 4,861 30,260 14,129 7,702 8,387 9,307 11,347 4,676 16,256 15,417 20,340 12,458 7,077 17,588 4,066 4,645 6,483 5,044 25,667 5,240 56,813 23,389 2,045 28,091 8,623 13,022 27,254 5,985 10,391 2,360 15,896 56,027 7,654 2,577 18,493 30,847 5,119 13,054 2,735 2000 542,831 (0.3) 9.7 9,302 2,671 11,984 5,581 134,541 7,561 11,528 3,052 4,996 55,186 26,754 3,521 6,249 31,361 15,738 7,485 6,981 7,508 13,708 4,906 19,563 18,164 30,240 4,829 7,555 17,580 2,435 5,234 7,761 7,341 23,950 6,451 57,423 23,467 2,191 24,276 8,848 16,102 34,893 4,170 11,721 1,809 17,563 57,300 10,135 2,653 20,569 41,793 5,542 15,151 2,908 2001 568,300 e. 4.7 10.1 14,781 2,575 16,371 4,746 149,831 6,954 11,348 3,122 4,013 54,573 24,352 4,080 5,851 31,976 15,839 7,770 8,055 9,883 13,319 5,401 20,667 18,268 26,535 6,770 7,557 18,188 3,881 5,394 8,252 5,264 27,890 5,495 65,616 23,217 2,112 25,460 9,498 15,512 33,426 4,152 12,893 2,156 17,637 59,342 13,565 2,578 21,449 41,122 5,741 14,135 2,969 2002 584,500 e. 2.9 10.4 12,103 2,541 17,642 4,491 156,858 10,332 11,383 3,891 3,973 52,241 31,479 3,994 7,040 32,093 16,156 7,480 6,876 11,614 14,416 5,042 20,927 20,532 26,975 12,851 7,160 21,653 4,445 5,234 8,667 5,418 31,571 7,949 63,631 22,184 1,893 24,269 8,923 14,793 35,859 4,981 11,491 2,098 16,514 58,114 11,272 3,501 20,305 40,782 5,595 13,651 2,895 (18.1) (1.3) 7.8 (5.4) 4.7 48.6 0.3 24.6 (1.0) (4.3) 29.3 (2.1) 20.3 0.4 2.0 (3.7) (14.6) 17.5 8.2 (6.6) 1.3 12.4 1.7 89.8 (5.3) 19.1 14.5 (3.0) 5.0 2.9 13.2 44.7 (3.0) (4.4) (10.4) (4.7) (6.1) (4.6) 7.3 20.0 (10.9) (2.7) (6.4) (2.1) (16.9) 35.8 (5.3) (0.8) (2.5) (3.4) (2.5) 51 27 15 43 18 2 24 6 26 37 5 29 7 23 20 36 49 10 14 46 22 13 21 1 41 9 11 33 17 19 12 3 34 38 47 40 44 39 16 8 48 32 45 28 50 4 42 25 31 35 30 Ann. percent change Rank
Notes: See Table 4 notes. On occasion, some state terminations result in successor firms which are not listed as new firms. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Labor (ETA) and U.S. Census Bureau.
Small Business Economic Indicators 18
Table 9 Business Bankruptcies by State, 1990 - 2002
State U.S. Total Yearly Change (%) Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Puerto Rico 1990 63,912 --1,356 164 2,377 467 7,391 1,088 445 114 129 2,842 2,366 74 365 2,041 1,090 893 560 1,324 1,338 318 1,356 1,838 1,633 1,771 288 1,319 223 425 354 490 1,120 348 2,606 1,280 209 1,778 1,716 1,061 1,751 327 404 388 1,274 5,318 895 179 2,958 1,978 381 1,366 136 --1995 50,516 --796 159 1,045 422 12,097 610 205 277 100 1,949 496 159 391 1,624 842 556 419 473 562 274 1,493 1,116 1,072 1,901 283 521 171 212 390 92 1,195 322 3,374 726 118 1,052 946 781 1,770 162 337 172 949 3,410 242 167 1,261 1,335 314 1,067 109 --2000 35,219 (6.4) 445 118 765 261 4,595 373 139 2,320 58 1,447 1,012 63 269 1,270 398 214 169 355 619 162 677 393 577 1,492 203 369 141 115 332 302 660 513 1,960 445 92 1,471 876 1,453 1,455 74 138 133 641 2,592 451 71 815 717 277 685 47 209 2001 39,719 12.8 428 104 753 290 5,238 467 156 1,374 49 1,896 1,162 68 303 1,547 604 289 220 474 716 151 758 427 688 1,887 289 505 149 144 419 334 730 620 2,432 613 115 1,794 941 1,389 1,541 64 147 164 886 3,155 475 97 924 642 322 734 45 333 2002 38,155 (3.9) 381 120 756 282 5,141 590 181 649 52 1,803 1,359 53 260 1,240 661 354 238 445 672 101 873 380 802 1,729 309 394 120 152 462 212 689 693 2,585 576 116 1,538 607 1,606 1,263 65 178 119 735 2,994 602 91 969 698 357 856 47 351 (11.0) 15.4 0.4 (2.8) (1.9) 26.3 16.0 (52.8) 6.1 (4.9) 17.0 (22.1) (14.2) (19.8) 9.4 22.5 8.2 (6.1) (6.1) (33.1) 15.2 (11.0) 16.6 (8.4) 6.9 (22.0) (19.5) 5.6 10.3 (36.5) (5.6) 11.8 6.3 (6.0) 0.9 (14.3) (35.5) 15.6 (18.0) 1.6 21.1 (27.4) (17.0) (5.1) 26.7 (6.2) 4.9 8.7 10.9 16.6 4.4 5.4 37 10 26 28 27 2 8 51 20 29 5 46 39 44 15 3 17 33 34 48 11 38 7 36 18 45 43 21 14 50 31 12 19 32 25 40 49 9 42 24 4 47 41 30 1 35 22 16 13 6 23 Ann. percent change Rank
Note: U.S. totals exclude Puerto Rico, Guam, Virgin Islands and Northern Mariana Islands. A business bankruptcy is the legal recognition that a company is insolvent (i.e., not able to satisfy creditors or discharge liabilities); must restructure or completely liquidate under Chapter 7, 11, 12, or 13 of the federal bankruptcy laws. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the Administrative Office of the U.S. Courts.
Small Business Economic Indicators 19
Table 10 Financial Information by State, 2001 and 2002 (billions of dollars unless noted) Proprietors' Income Percent 2002 Change 759.8 7.9 1.9 10.7 5.3 120.1 16.6 12.4 1.6 3.0 31.0 22.0 2.9 4.1 33.5 10.8 7.7 6.0 7.3 9.3 2.7 11.1 18.8 18.7 11.8 4.7 12.2 2.3 4.7 5.5 3.6 27.7 3.3 66.2 16.1 1.5 21.4 10.4 7.9 34.6 2.1 6.6 2.0 17.0 84.9 4.3 1.5 13.3 15.2 2.8 9.4 1.5 4.2 (2.6) 5.4 6.9 2.2 4.9 5.1 4.3 (1.9) 4.9 5.8 2.6 4.1 5.2 3.1 0.6 15.3 0.2 2.1 5.8 3.6 4.3 4.3 4.9 9.5 (4.0) 2.4 4.6 0.8 5.6 6.0 5.1 2.3 4.0 (0.7) 2.1 2.8 3.9 4.7 3.9 6.1 2.3 (17.9) 4.7 5.7 1.6 1.0 4.4 6.3 3.9 3.6 49 11 3 38 15 13 23 48 17 8 34 25 12 32 44 1 45 39 7 30 22 24 16 2 50 35 20 43 10 6 14 37 26 47 40 33 27 19 28 5 36 51 18 9 41 42 21 4 29 31 46 Wage-and-Salary Income Percent 2001 2002 Change Rank 4,947.4 59.0 11.3 78.7 32.5 647.0 88.4 81.2 16.5 39.1 239.3 144.2 19.9 16.9 240.7 95.2 43.3 42.6 55.9 58.1 18.0 98.8 153.6 173.3 99.8 31.0 90.8 10.5 27.3 37.0 22.5 178.5 23.0 411.2 129.9 8.9 188.2 43.8 55.1 203.3 16.6 55.8 10.0 86.7 355.1 33.8 9.4 137.8 110.8 20.1 89.7 7.2 4,999.8 60.5 11.9 80.5 33.5 647.4 87.1 81.3 16.9 40.5 247.0 146.2 20.8 17.2 241.3 97.3 44.2 43.5 57.2 59.6 18.6 102.6 151.5 174.7 102.0 31.9 92.8 11.0 28.2 38.0 22.9 182.5 24.1 402.1 131.7 9.2 191.2 44.5 55.5 207.8 17.3 56.8 10.4 89.3 354.1 34.2 9.6 139.7 111.9 20.7 91.5 7.6 1.1 2.5 4.9 2.3 2.9 0.1 (1.5) 0.1 2.8 3.6 3.2 1.4 4.8 2.0 0.2 2.2 2.2 2.0 2.3 2.7 3.5 3.9 (1.4) 0.8 2.3 3.0 2.1 5.0 3.2 2.7 1.7 2.3 4.4 (2.2) 1.4 4.4 1.6 1.6 0.7 2.2 4.1 1.8 3.6 3.1 (0.3) 1.3 2.1 1.3 1.0 2.7 2.0 4.9 21 2 22 16 47 50 46 17 10 12 39 4 33 45 26 28 31 23 19 11 8 49 43 24 15 29 1 13 18 35 25 5 51 38 6 36 37 44 27 7 34 9 14 48 41 30 40 42 20 32 3
2001 United States Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 729.1 8.1 1.8 10.0 5.2 114.4 15.7 11.9 1.6 2.9 29.3 21.5 2.8 3.9 32.5 10.7 6.7 6.0 7.1 8.8 2.6 10.6 18.0 17.8 10.8 4.9 11.9 2.2 4.7 5.2 3.4 26.4 3.2 63.6 16.2 1.4 20.8 10.0 7.6 33.3 2.0 6.5 2.4 16.2 80.3 4.2 1.5 12.7 14.3 2.7 9.1 1.5
Rank
Source: U.S. Small Business Administration, Office of Advocacy, from data provided by Bureau of Economic Analysis. Small Business Economic Indicators 20
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) -Industry Total private Annual Employment 2001 2002 110,990.0 849.0 565.0 6,685.0 17,695.0 7,065.0 6,776.0 23,522.0 7,712.0 40,121.0 35.6 79.9 338.0 111.0 1,462.5 922.0 4,300.5 1,690.9 33.8 477.5 566.0 786.1 519.9 634.4 1,490.8 1,021.9 125.8 958.0 59.8 570.7 656.2 1,482.5 2,010.6 1,630.9 1,759.9 839.3 379.9 233.5 479.2 1,847.8 192.4 1,266.0 15.0 462.8 1,716.5 852.2 4,024.0 2,752.0 1,043.9 2,897.3 3,450.8 2,424.8 1,189.0 1,141.4 8,256.9 3,117.5 2,053.4 720.2 109,532.0 867.1 557.0 6,556.0 16,724.0 6,773.0 6,671.0 23,306.0 7,760.0 40,317.9 32.2 79.7 334.1 110.8 1,461.5 900.0 4,194.2 1,689.3 35.0 431.8 520.8 766.5 491.0 614.6 1,410.0 1,008.1 125.5 927.1 55.5 554.3 591.9 1,417.7 1,823.3 1,418.6 1,667.2 803.6 371.7 228.9 472.4 1,826.1 189.9 1,161.4 14.9 423.4 1,613.8 841.9 3,908.0 2,764.0 1,064.2 2,868.3 3,393.6 2,432.2 1,174.3 1,150.6 8,143.7 3,079.5 2,076.0 772.4 Absolute change (1,458.0) 18.1 (8.0) (129.0) (971.0) (292.0) (105.0) (216.0) 48.0 196.9 (3.4) (0.2) (3.9) (0.2) (1.0) (22.0) (106.3) (1.6) 1.2 (45.7) (45.2) (19.6) (28.9) (19.8) (80.8) (13.8) (0.3) (30.9) (4.3) (16.4) (64.3) (64.8) (187.3) (212.3) (92.7) (35.7) (8.2) (4.6) (6.8) (21.7) (2.5) (104.6) (0.1) (39.4) (102.7) (10.3) (116.0) 12.0 20.3 (29.0) (57.2) 7.4 (14.7) 9.2 (113.2) (38.0) 22.6 52.2 Percent change (1.3) 2.1 (1.4) (1.9) (5.5) (4.1) (1.5) (0.9) 0.6 0.5 (9.6) (0.3) (1.2) (0.2) (0.1) (2.4) (2.5) (0.1) 3.6 (9.6) (8.0) (2.5) (5.6) (3.1) (5.4) (1.4) (0.2) (3.2) (7.2) (2.9) (9.8) (4.4) (9.3) (13.0) (5.3) (4.3) (2.2) (2.0) (1.4) (1.2) (1.3) (8.3) (0.7) (8.5) (6.0) (1.2) (2.9) 0.4 1.9 (1.0) (1.7) 0.3 (1.2) 0.8 (1.4) (1.2) 1.1 7.2 Percent small 1997 51.8 89.2 39.8 89.3 39.1 35.5 64.8 50.7 42.0 55.1 17.8 37.4 39.9 52.7 87.8 75.5 92.9 27.6 9.0 30.6 57.3 63.8 50.7 28.3 50.7 21.1 18.5 44.4 47.0 47.1 29.2 57.8 47.3 28.3 16.0 28.5 66.9 (D) 60.6 52.0 47.3 10.6 10.3 68.8 18.9 18.2 69.1 58.5 57.3 2.8 36.5 78.6 29.2 58.7 64.5 55.7 32.4 34.9
Major Industries 700 Agricultural services 1000 Mining 1500 Construction 2000 Manufacturing 4000 Transportation, commun. and public utilities 5000 Wholesale trade 5200 Retail trade 6000 Finance, insurance, and real estate 7000 Services Two-Digit SIC Code Industries 1000 Metal mining 1200 Coal mining 1300 Oil and gas extraction 1400 Nonmetallic minerals, except fuels 1500 General building contractors 1600 Heavy construction, except building 1700 Special trade contractors 2000 Food and kindred products 2100 Tobacco products 2200 Textile mill products 2300 Apparel and other textile products 2400 Lumber and wood products 2500 Furniture and fixtures 2600 Paper and allied products 2700 Printing and publishing 2800 Chemicals and allied products 2900 Petroleum and coal products 3000 Rubber and miscellaneous plastics products 3100 Leather and leather products 3200 Stone, clay, and glass products 3300 Primary metal industries 3400 Fabricated metal products 3500 Industrial machinery and equipment 3600 Electronic and other electrical equipment 3700 Transportation equipment 3800 Instruments and related products 3900 Miscellaneous manufacturing industries 4000 Railroad transportation 4100 Local and interurban passenger transit 4200 Trucking and warehousing 4400 Water transportation 4500 Transportation by air 4600 Pipelines, except natural gas 4700 Transportation services 4800 Communications 4900 Electric, gas, and sanitary services 5000 Wholesale trade - durable goods 5100 Nondurable goods 5200 Building materials and garden supplies 5300 General merchandise stores 5400 Food stores 5500 Automotive dealers and service stations 5600 Apparel and accessory stores 5700 Furniture and home furnishings stores 5800 Eating and drinking places 5900 Miscellaneous retail establishments 6000 Depository institutions 6100 Nondepository institutions
Small Business Economic Indicators 21
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) 6200 6300 6400 6700 7000 7200 7300 7500 7600 7800 7900 8000 8100 8200 8300 8400 8600 8700 8900 Industry Security and commodity brokers Insurance carriers Insurance agents, brokers, and service Holding and other investment offices Hotels and other lodging places Personal services Business services Auto repair, services, and parking Miscellaneous repair services Motion pictures Amusement and recreation services Health services Legal services Educational services Social services Museums & botanical & zoological gardens Membership organizations Engineering and management services Services, nec Annual Employment 2001 2002 768.9 1,595.3 773.3 257.4 1,870.0 1,269.4 9,572.3 1,257.2 373.9 583.0 1,721.8 10,380.7 1,037.1 2,433.9 3,056.9 110.3 2,468.0 3,593.1 49.7 228.6 560.2 6.5 9.7 74.6 125.1 209.2 44.3 36.9 9.9 753.4 33.0 676.1 289.0 633.0 933.0 226.0 859.1 575.9 328.6 244.3 513.9 145.6 218.1 121.9 201.0 90.5 28.2 188.8 182.9 23.0 52.9 50.5 7.9 17.7 109.5 53.5 63.6 70.6 51.4 718.3 1,582.4 787.8 261.2 1,798.0 1,286.4 9,305.2 1,263.2 377.4 582.9 1,642.0 10,673.1 1,065.9 2,525.5 3,177.2 108.1 2,476.7 3,645.0 46.9 236.5 570.3 6.0 8.7 74.4 121.7 209.2 44.5 36.4 10.1 773.9 32.8 654.7 285.6 614.4 917.0 215.5 819.2 562.8 325.4 239.0 522.6 145.9 213.5 120.0 203.0 91.5 28.1 186.5 178.3 23.9 49.5 45.9 5.3 16.2 89.1 50.1 62.9 65.1 47.7 Absolute change (50.6) (12.9) 14.5 3.8 (72.0) 17.0 (267.1) 6.0 3.5 (0.1) (79.8) 292.4 28.8 91.6 120.3 (2.2) 8.7 51.9 (2.8) 7.9 10.1 (0.5) (1.0) (0.2) (3.4) 0.2 (0.5) 0.2 20.5 (0.2) (21.4) (3.4) (18.6) (16.0) (10.5) (39.9) (13.1) (3.2) (5.3) 8.7 0.3 (4.6) (1.9) 2.0 1.0 (0.1) (2.3) (4.6) 0.9 (3.4) (4.6) (2.6) (1.5) (20.4) (3.4) (0.7) (5.5) (3.7) Percent change (6.6) (0.8) 1.9 1.5 (3.9) 1.3 (2.8) 0.5 0.9 (0.0) (4.6) 2.8 2.8 3.8 3.9 (2.0) 0.4 1.4 (5.6) 3.5 1.8 (7.7) (10.3) (0.3) (2.7) 0.5 (1.4) 2.0 2.7 (0.6) (3.2) (1.2) (2.9) (1.7) (4.6) (4.6) (2.3) (1.0) (2.2) 1.7 0.2 (2.1) (1.6) 1.0 1.1 (0.4) (1.2) (2.5) 3.9 (6.4) (9.1) (32.9) (8.5) (18.6) (6.4) (1.1) (7.8) (7.2) Percent small 1997 27.6 9.4 77.3 52.0 43.1 76.0 45.7 78.5 78.7 39.3 70.4 41.0 90.3 46.2 80.5 81.5 91.2 62.4 75.3 97.6 84.0 3.0 6.5 33.9 33.0 47.9 53.0 72.2 15.6 97.0 80.0 81.8 85.6 72.1 92.1 97.5 90.5 94.9 97.5 97.7 17.7 31.8 30.7 34.7 29.7 33.9 26.7 33.3 48.1 1.2 13.7 15.3 29.1 52.3 43.9 45.9 19.5 18.2 49.6
Three-Digit SIC Code Industries 740 Veterinary services 780 Landscape and horticultural services 1010 Iron ores 1020 Copper ores 1220 Bituminous coal and lignite mining 1310 Crude petroleum and natural gas 1380 Oil and gas field services 1420 Crushed and broken stone 1440 Sand and gravel 1470 Chemical and fertilizer minerals 1520 Residential building construction 1530 Operative builders 1540 Nonresidential building construction 1610 Highway and street construction 1620 Heavy construction, except highway 1710 Plumbing, heating, and air-conditioning 1720 Painting and paper hanging 1730 Electrical work 1740 Masonry, stonework, and plastering 1750 Carpentry and floor work 1760 Roofing, siding, and sheet metal work 2010 Meat products 2020 Dairy products 2030 Preserved fruits and vegetables 2040 Grain mill products 2050 Bakery products 2060 Sugar and confectionery products 2070 Fats and oils 2080 Beverages 2090 Miscellaneous food and kindred products 2110 Cigarettes 2210 Broadwoven fabric mills, cotton 2220 Broadwoven fabric mills, synthetics 2230 Broadwoven fabric mills, wool 2240 Narrow fabric mills 2250 Knitting mills 2260 Textile finishing, except wool 2270 Carpets and rugs 2280 Yarn and thread mills 2290 Miscellaneous textile goods
Small Business Economic Indicators 22
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) 2310 2320 2330 2340 2360 2380 2390 2410 2420 2430 2440 2450 2490 2510 2520 2530 2540 2590 2620 2630 2650 2670 2710 2720 2730 2740 2750 2760 2780 2790 2810 2820 2830 2840 2850 2860 2870 2890 2910 2950 3010 3020 3050 3060 3080 3110 3140 3160 3170 3210 3220 3230 3240 3250 3260 3270 3290 3310 3320 3330 Industry Men's and boys' suits and coats Men's and boys' furnishings Women's and misses' outerwear Women's and children's undergarments Girls' and children's outerwear Miscellaneous apparel and accessories Miscellaneous fabricated textile products Logging Sawmills and planing mills Millwork, plywood, and structural members Wood containers Wood buildings and mobile homes Miscellaneous wood products Household furniture Office furniture Public building and related furniture Partitions and fixtures Miscellaneous furniture and fixtures Paper mills Paperboard mills Paperboard containers and boxes Miscellaneous converted paper products Newspapers Periodicals Books Miscellaneous publishing Commercial printing Manifold business forms Blankbooks and bookbinding Printing trade services Industrial inorganic chemicals Plastics materials and synthetics Drugs Soap, cleaners, and toilet goods Paints and allied products Industrial organic chemicals Agricultural chemicals Miscellaneous chemical products Petroleum refining Asphalt paving and roofing materials Tires and inner tubes Rubber and plastics footwear Hose, belting, gaskets, and packing Fabricated rubber products, nec Miscellaneous plastics products, nec Leather tanning and finishing Footwear, except rubber Luggage Handbags and personal leather goods Flat glass Glass and glassware, pressed or blown Products of purchased glass Cement, hydraulic Structural clay products Pottery and related products Concrete, gypsum, and plaster products Miscellaneous nonmetallic mineral products Blast furnaces and basic steel products Iron and steel foundries Primary nonferrous metals Annual Employment 2001 2002 17.5 117.0 158.8 17.0 12.1 29.9 200.6 73.2 172.1 328.2 56.2 76.9 79.5 264.8 73.9 52.1 88.0 41.1 131.9 43.6 210.9 234.8 423.4 145.5 124.2 92.5 542.5 39.3 54.4 44.3 94.7 145.1 320.2 155.4 49.9 117.0 47.9 91.8 82.9 28.3 75.2 4.0 70.2 99.9 708.7 8.6 24.9 8.1 6.6 15.3 64.9 63.6 18.5 31.8 36.2 251.0 68.6 209.1 114.8 32.2 15.2 105.7 150.3 13.7 9.6 27.5 188.0 69.5 168.3 327.8 55.1 70.7 75.2 252.8 64.7 51.9 81.2 40.5 126.2 42.4 206.0 226.8 406.7 136.0 114.3 92.4 512.7 37.2 48.6 40.6 89.9 137.4 328.9 151.7 48.8 115.1 44.7 91.6 82.0 29.6 71.9 4.1 63.7 96.0 691.4 7.4 23.1 6.1 8.4 15.1 60.3 60.9 19.1 31.4 34.4 247.8 63.6 187.6 103.4 28.5 Absolute change (2.3) (11.3) (8.5) (3.3) (2.5) (2.4) (12.6) (3.7) (3.8) (0.4) (1.1) (6.2) (4.3) (12.0) (9.2) (0.2) (6.8) (0.6) (5.7) (1.2) (4.9) (8.0) (16.7) (9.5) (9.9) (0.1) (29.8) (2.1) (5.8) (3.7) (4.8) (7.7) 8.7 (3.7) (1.1) (1.9) (3.2) (0.2) (0.9) 1.3 (3.3) 0.1 (6.5) (3.9) (17.3) (1.2) (1.8) (2.0) 1.8 (0.2) (4.6) (2.7) 0.6 (0.4) (1.8) (3.2) (5.0) (21.5) (11.4) (3.7) Percent change (13.1) (9.7) (5.4) (19.4) (20.7) (8.0) (6.3) (5.1) (2.2) (0.1) (2.0) (8.1) (5.4) (4.5) (12.4) (0.4) (7.7) (1.5) (4.3) (2.8) (2.3) (3.4) (3.9) (6.5) (8.0) (0.1) (5.5) (5.3) (10.7) (8.4) (5.1) (5.3) 2.7 (2.4) (2.2) (1.6) (6.7) (0.2) (1.1) 4.6 (4.4) 2.5 (9.3) (3.9) (2.4) (14.0) (7.2) (24.7) 27.3 (1.3) (7.1) (4.2) 3.2 (1.3) (5.0) (1.3) (7.3) (10.3) (9.9) (11.5) Percent small 1997 36.9 38.6 77.3 45.0 67.0 70.8 62.3 94.1 66.4 61.3 93.8 33.9 61.9 45.2 37.2 45.6 78.3 58.8 10.3 6.1 38.9 37.3 28.4 56.7 37.8 54.2 72.4 48.3 62.0 76.7 15.5 12.9 20.9 40.3 42.8 15.1 34.4 44.7 6.7 43.9 4.4 36.6 31.0 43.1 50.9 41.6 31.5 78.0 (D) 5.1 11.1 40.1 25.7 38.0 50.4 68.0 43.9 15.1 36.7 11.4
Small Business Economic Indicators 23
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) 3350 3360 3410 3420 3430 3440 3450 3460 3470 3480 3490 3510 3520 3530 3540 3550 3560 3570 3580 3590 3610 3620 3630 3640 3650 3660 3670 3690 3710 3720 3730 3740 3760 3790 3810 3820 3840 3850 3860 3870 3910 3930 3940 3950 3960 3990 4110 4120 4130 4150 4210 4220 4440 4490 4510 4580 4720 4730 4810 4830 Industry Nonferrous rolling and drawing Nonferrous foundries (castings) Metal cans and shipping containers Cutlery, handtools, and hardware Plumbing and heating, except electric Fabricated structural metal products Screw machine products, bolts, etc Metal forgings and stampings Metal services, nec Ordnance and accessories, nec Miscellaneous fabricated metal products Engines and turbines Farm and garden machinery Construction and related machinery Metalworking machinery Special industry machinery General industrial machinery Computer and office equipment Refrigeration and service machinery Misc industrial and commercial machinery Electric distribution equipment Electrical industrial apparatus Household appliances Electric lighting and wiring equipment Household audio and video equipment Communications equipment Electronic components and accessories Misc electrical equipment and supplies Motor vehicles and equipment Aircraft and parts Ship and boat building and repairing Railroad equipment Guided missiles, space vehicles, and parts Miscellaneous transportation equipment Search and navigation equipment Measuring and controlling devices Medical instruments and supplies Ophthalmic goods Photographic equipment and supplies Watches, clocks, watchcases, and parts Jewelry, silverware, and plated ware Musical instruments Toys and sporting goods Pens, pencils, office, and art supplies Costume jewelry and notions Miscellaneous manufactures Local and suburban transportation Taxicabs Intercity and rural bus transportation School buses Trucking and courier services, except air Public warehousing and storage Water transportation of freight, nec Water transportation services Air transportation, scheduled Airports, flying fields, and services Passenger transportation arrangement Freight transportation arrangement Telephone communications Radio and television broadcasting Annual Employment 2001 2002 170.2 88.7 34.7 114.0 58.1 497.6 99.0 230.6 140.3 38.3 270.1 80.9 94.8 228.9 305.9 156.7 239.5 343.3 202.4 358.1 79.5 142.3 105.6 172.7 74.5 264.3 661.0 131.0 947.0 460.6 161.1 29.8 83.7 58.4 150.9 297.7 288.0 31.7 66.6 4.4 45.8 16.6 96.6 28.9 17.5 174.5 236.3 31.8 25.1 147.7 1,619.8 216.8 38.5 126.3 1,070.3 145.4 208.5 195.6 1,194.0 250.9 151.7 81.5 34.6 109.5 55.7 476.8 93.2 217.6 135.8 39.2 255.2 75.4 90.1 206.1 275.8 137.1 216.6 303.7 187.7 330.9 69.9 133.7 101.0 157.8 67.3 217.0 558.2 113.8 911.5 410.2 157.5 27.2 81.7 60.0 147.7 275.1 288.3 28.8 60.4 3.2 43.9 15.8 92.6 29.0 16.0 174.5 234.6 30.8 23.0 148.7 1,590.0 224.7 37.4 126.7 970.9 141.8 183.3 185.6 1,093.7 247.8 Absolute change (18.5) (7.2) (0.1) (4.5) (2.4) (20.8) (5.8) (13.0) (4.5) 0.9 (14.9) (5.5) (4.7) (22.8) (30.1) (19.6) (22.9) (39.6) (14.7) (27.2) (9.6) (8.6) (4.6) (14.9) (7.2) (47.3) (102.8) (17.2) (35.5) (50.4) (3.6) (2.6) (2.0) 1.6 (3.2) (22.6) 0.3 (2.9) (6.2) (1.2) (1.9) (0.8) (4.0) 0.1 (1.5) (1.7) (1.0) (2.1) 1.0 (29.8) 7.9 (1.1) 0.4 (99.4) (3.6) (25.2) (10.0) (100.3) (3.1) Percent change (10.9) (8.1) (0.3) (3.9) (4.1) (4.2) (5.9) (5.6) (3.2) 2.3 (5.5) (6.8) (5.0) (10.0) (9.8) (12.5) (9.6) (11.5) (7.3) (7.6) (12.1) (6.0) (4.4) (8.6) (9.7) (17.9) (15.6) (13.1) (3.7) (10.9) (2.2) (8.7) (2.4) 2.7 (2.1) (7.6) 0.1 (9.1) (9.3) (27.3) (4.1) (4.8) (4.1) 0.3 (8.6) (0.7) (3.1) (8.4) 0.7 (1.8) 3.6 (2.9) 0.3 (9.3) (2.5) (12.1) (5.1) (8.4) (1.2) Percent small 1997 21.6 58.4 18.2 40.4 40.9 69.0 79.2 50.3 83.4 19.0 53.7 9.9 36.2 45.0 70.8 58.5 41.7 20.3 28.3 83.5 30.9 31.0 11.0 35.8 45.5 24.0 35.7 31.0 17.1 9.4 36.2 14.2 1.6 44.9 7.3 41.1 36.9 31.3 19.9 33.6 75.2 59.6 60.6 60.8 67.5 73.7 63.9 82.9 31.4 51.9 50.8 68.3 40.4 52.7 4.5 35.6 69.4 76.7 9.9 48.4
Small Business Economic Indicators 24
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) 4840 4910 4920 4930 4950 5010 5020 5030 5040 5050 5060 5070 5080 5090 5110 5120 5130 5140 5150 5160 5170 5180 5190 5210 5230 5250 5260 5310 5330 5390 5410 5420 5460 5510 5530 5540 5590 5610 5620 5650 5660 5710 5720 5730 5910 5920 5930 5940 5960 5980 5990 6020 6030 6060 6140 6150 6160 6210 6230 6280 Industry Cable and other pay television services Electric services Gas production and distribution Combination utility services Sanitary services Motor vehicles, parts, and supplies Furniture and home furnishings Lumber and other construction materials Professional and commercial equipment Metals and minerals, except petroleum Electrical goods Hardware, plumbing, and heating equipment Machinery, equipment, and supplies Misc wholesale trade durable goods Paper and paper products Drugs, proprietaries, and sundries Apparel, piece goods, and notions Groceries and related products Farm-product raw materials Chemicals and allied products Petroleum and petroleum products Beer, wine, and distilled beverages Misc wholesale trade nondurable goods Lumber and other building materials Paint, glass, and wallpaper stores Hardware stores Retail nurseries and garden stores Department stores Variety stores Miscellaneous general merchandise stores Grocery stores Meat and fish markets Retail bakeries New and used car dealers Auto and home supply stores Gasoline service stations Automotive dealers, nec Men's and boys' clothing stores Women's clothing stores Family clothing stores Shoe stores Furniture and home furnishings stores Household appliance stores Radio, television, and computer stores Drug stores and proprietary stores Liquor stores Used merchandise stores Miscellaneous shopping goods stores Nonstore retailers Fuel dealers Retail stores, nec Commercial banks Savings institutions Credit unions Personal credit institutions Business credit institutions Mortgage bankers and brokers Security brokers and dealers Commodity contracts brokers, dealers, exch. Security and commodity services Annual Employment 2001 2002 233.8 360.2 125.7 148.3 177.7 502.1 166.9 279.5 919.4 150.0 564.3 313.4 813.3 315.0 261.2 273.5 201.3 931.7 94.5 157.5 143.8 166.9 521.2 680.5 63.2 160.3 103.1 2,559.7 156.6 181.0 3,051.9 50.1 191.4 1,120.5 410.2 648.3 13.5 82.9 275.5 450.5 195.3 578.7 73.5 489.2 705.8 114.7 134.4 1,106.9 393.6 97.5 564.6 1,433.6 255.8 203.3 222.3 149.8 326.9 554.7 29.3 184.9 237.6 360.9 121.1 143.0 175.2 498.0 164.8 282.9 885.4 142.8 526.1 312.9 779.6 315.2 256.2 286.3 197.7 927.2 90.1 159.0 143.9 173.4 529.7 709.2 61.9 161.2 99.6 2,528.6 156.7 183.0 3,009.3 44.7 186.2 1,129.6 406.2 640.9 12.8 78.4 271.5 448.9 191.4 588.6 71.9 490.1 704.6 114.6 137.8 1,077.7 389.4 98.3 557.1 1,448.0 262.9 211.8 224.9 151.4 374.5 503.5 27.0 187.8 Absolute change 3.8 0.7 (4.6) (5.3) (2.5) (4.1) (2.1) 3.4 (34.0) (7.2) (38.2) (0.5) (33.7) 0.2 (5.0) 12.8 (3.6) (4.5) (4.4) 1.5 0.1 6.5 8.5 28.7 (1.3) 0.9 (3.5) (31.1) 0.1 2.0 (42.6) (5.4) (5.2) 9.1 (4.0) (7.4) (0.7) (4.5) (4.0) (1.6) (3.9) 9.9 (1.6) 0.9 (1.2) (0.1) 3.4 (29.2) (4.2) 0.8 (7.5) 14.4 7.1 8.5 2.6 1.6 47.6 (51.2) (2.3) 2.9 Percent change 1.6 0.2 (3.7) (3.6) (1.4) (0.8) (1.3) 1.2 (3.7) (4.8) (6.8) (0.2) (4.1) 0.1 (1.9) 4.7 (1.8) (0.5) (4.7) 1.0 0.1 3.9 1.6 4.2 (2.1) 0.6 (3.4) (1.2) 0.1 1.1 (1.4) (10.8) (2.7) 0.8 (1.0) (1.1) (5.2) (5.4) (1.5) (0.4) (2.0) 1.7 (2.2) 0.2 (0.2) (0.1) 2.5 (2.6) (1.1) 0.8 (1.3) 1.0 2.8 4.2 1.2 1.1 14.6 (9.2) (7.8) 1.6 Percent small 1997 16.3 18.8 7.8 2.5 46.2 69.7 84.3 77.0 53.2 68.4 57.5 75.1 80.2 79.6 43.1 36.0 76.4 51.3 81.5 60.0 67.5 77.2 68.2 44.2 65.8 85.4 88.5 0.4 20.8 15.7 31.6 86.9 93.1 91.5 48.5 68.1 (D) 51.8 32.4 16.4 31.3 70.5 85.9 43.8 28.2 57.7 78.3 59.5 56.6 73.7 82.3 24.0 39.8 93.3 20.6 26.8 52.1 19.5 14.2 48.2
Small Business Economic Indicators 25
Table 11 Nonfarm Private Employment by Industry, 2001 - 2002 (thousands of jobs unless noted)
SIC Codes (1987) 6310 6320 6330 6360 6510 6530 6550 6710 7010 7210 7220 7230 7260 7290 7310 7320 7330 7340 7350 7360 7370 7380 7510 7520 7530 7540 7620 7810 7830 7840 7930 7990 8010 8020 8040 8050 8060 8070 8080 8210 8220 8240 8320 8330 8350 8360 8390 8610 8620 8630 8640 8710 8720 8730 8740 Industry Life insurance Medical service and health insurance Fire, marine, and casualty insurance Title insurance Real estate operators and lessors Real estate agents and managers Subdividers and developers Holding offices Hotels and motels Laundry, cleaning, and garment services Photographic studios, portrait Beauty shops Funeral service and crematories Miscellaneous personal services Advertising Credit reporting and collection Mailing, reproduction, and stenographic serv. Services to buildings Misc equipment rental and leasing Personnel supply services Computer and data processing services Miscellaneous business services Automotive rentals, without drivers Automobile parking Automotive repair shops Automotive services, except repair Electrical repair shops Motion picture production and services Motion picture theaters Video tape rental Bowling centers Misc amusement and recreation services Offices and clinics of medical doctors Offices and clinics of dentists Offices and clinics of other hlth practioners Nursing and personal care facilities Hospitals Medical and dental laboratories Home health care services Elementary and secondary schools Colleges and universities Vocational schools Individual and family services Job training and related services Child day care services Residential care Social services, nec Business associations Professional organizations Labor organizations Civic and social associations Engineering and architectural services Accounting, auditing, and bookkeeping Research and testing services Management and public relations Annual Employment 2001 2002 476.6 394.0 544.0 80.0 596.4 774.3 127.1 112.1 1,802.7 435.2 68.9 436.5 103.6 212.0 296.9 175.5 351.4 1,016.4 297.1 3,446.0 2,225.0 1,764.0 221.0 81.0 696.1 259.1 112.3 264.8 137.7 163.7 80.3 1,281.2 2,002.1 702.3 454.7 1,846.6 4,095.8 221.4 636.2 745.6 1,351.4 102.6 867.1 391.8 716.2 864.0 217.8 115.0 71.4 144.4 462.6 1,053.6 699.5 673.9 1,166.2 461.4 398.8 535.8 82.1 597.5 785.5 128.3 112.7 1,730.6 425.6 69.1 453.3 105.7 220.5 285.1 202.6 384.2 1,031.4 305.8 3,169.4 2,195.0 1,731.7 213.8 79.4 711.4 258.5 121.0 259.2 142.0 163.6 77.7 1,206.1 2,063.5 713.9 469.7 1,888.9 4,224.9 228.9 647.5 753.8 1,426.6 106.7 908.0 399.1 726.3 904.4 239.3 111.8 73.2 143.2 472.2 1,035.5 711.4 687.7 1,210.4 Absolute change (15.2) 4.8 (8.2) 2.1 1.1 11.2 1.2 0.6 (72.1) (9.6) 0.2 16.8 2.1 8.5 (11.8) 27.1 32.8 15.0 8.7 (276.6) (30.0) (32.3) (7.2) (1.6) 15.3 (0.6) 8.7 (5.6) 4.3 (0.1) (2.6) (75.1) 61.4 11.6 15.0 42.3 129.1 7.5 11.3 8.2 75.2 4.1 40.9 7.3 10.1 40.4 21.5 (3.2) 1.8 (1.2) 9.6 (18.1) 11.9 13.8 44.2 Percent change (3.2) 1.2 (1.5) 2.6 0.2 1.4 0.9 0.5 (4.0) (2.2) 0.3 3.8 2.0 4.0 (4.0) 15.4 9.3 1.5 2.9 (8.0) (1.3) (1.8) (3.3) (2.0) 2.2 (0.2) 7.7 (2.1) 3.1 (0.1) (3.2) (5.9) 3.1 1.7 3.3 2.3 3.2 3.4 1.8 1.1 5.6 4.0 4.7 1.9 1.4 4.7 9.9 (2.8) 2.5 (0.8) 2.1 (1.7) 1.7 2.0 3.8 Percent small 1997 4.4 10.5 8.2 13.4 87.5 81.0 68.7 39.2 42.5 78.8 57.0 88.6 76.7 56.4 59.4 64.9 71.0 65.0 68.7 30.3 51.1 51.1 30.8 43.9 95.3 87.1 65.4 35.8 29.5 58.6 83.5 69.0 79.5 99.0 88.8 53.2 9.4 58.0 45.9 92.1 16.1 80.9 83.4 66.3 84.6 79.9 80.6 88.0 91.3 92.0 87.6 68.5 67.4 53.8 59.6
Notes: Percent small data for 2000 is available but using the new NAICS industry classifications. nec = Not elsewhere classified, (D) = Disclosure (data suppressed to protect the confidentiality of individual firms). Employment totals can differ from other listed figures because of definitional differences and the timing of the compiled numbers. Source: U.S. Small Business Administration, Office of Advocacy, from employment data provided by the Bureau of Labor Statistics and employment firm size data provided by the U.S. Census Bureau/Statistics of U.S. Businesses (2000 NAICS data is available).
Small Business Economic Indicators 26
Table 12 Industry Comparisons, 2001 - 2002 (thousands, two-digit SIC level)
SIC Codes (1987) Industry Annual Employment 2001 2002 Absolute Change Percent Change Percent small 1997
Fastest Growing Industries in Employment, Ranked by Percent Change 6100 8300 8200 2100 8000 Nondepository institutions Social services Educational services Tobacco products Health services 720.2 3,056.9 2,433.9 33.8 10,380.7 772.4 3,177.2 2,525.5 35.0 10,673.1 52.2 120.3 91.6 1.2 292.4 7.2 3.9 3.8 3.6 2.8 34.9 80.5 46.2 9.0 41.0
Fastest Declining Industries in Employment, Ranked by Percent Change 3600 3300 2200 1000 3500 Electronic and other electrical equipment Primary metal industries Textile mill products Metal mining Industrial machinery and equipment 1,630.9 656.2 477.5 35.6 2,010.6 1,418.6 591.9 431.8 32.2 1,823.3 (212.3) (64.3) (45.7) (3.4) (187.3) (13.0) (9.8) (9.6) (9.6) (9.3) 28.3 29.2 30.6 17.8 47.3
Industries Generating the Most Jobs, Ranked by Absolute Change 8000 8300 8200 6100 8700 Health services Social services Educational services Nondepository institutions Engineering and management services 10,380.7 3,056.9 2,433.9 720.2 3,593.1 10,673.1 3,177.2 2,525.5 772.4 3,645.0 292.4 120.3 91.6 52.2 51.9 2.8 3.9 3.8 7.2 1.4 41.0 80.5 46.2 34.9 62.4
Industries Losing the Most Jobs, Ranked by Absolute Change 7300 3600 3500 5000 5800 Business services Electronic and other electrical equipment Industrial machinery and equipment Wholesale trade - durable goods Eating and drinking places 9,572.3 1,630.9 2,010.6 4,024.0 8,256.9 9,305.2 1,418.6 1,823.3 3,908.0 8,143.7 (267.1) (212.3) (187.3) (116.0) (113.2) (2.8) (13.0) (9.3) (2.9) (1.4) 45.7 28.3 47.3 69.1 64.5
Source: U.S. Small Business Administration, Office of Advocacy, from employment data provided by the Bureau of Labor Statistics and employment firm size data provided by the U.S. Census Bureau (Statistics of U.S. Businesses).
Small Business Economic Indicators 27
Table 13 Bank Lending Information by Size of Firm, 1991 - 2002 (change in percent of Senior Loan Officer responses on bank lending practices) Tightening loan standards Large and medium Small 20 18 21 6 25 15 45 42 51 40 40 32 51 36 60 45 44 27 34 24 25 21 11 9 9 2 5 2 10 8 7 4 36 15 0 (5) (7) (2) 2 2 (7) (4) (6) (2) (7) (4) (5) (5) (8) (12) (4) (2) (1) 2 7 4 (3) (2) (6) (2) (6) (7) (7) (5) (17) (18) (7) (7) (12) (9) (13) (12) (18) (9) (19) (12) (8) (2) 3 (2) 4 (5) (2) (2) 1 (7) 5 0 9 5 12 9 16 7 36 32 Stronger demand for loans Large and medium Small (53) (48) (45) (36) (36) (29) (55) (45) (70) (50) (53) (42) (40) (35) (50) (30) (23) (13) (5) (4) (9) 5 9 (2) (2) (4) 0 0 0 10 20 11 28 8 (9) 0 29 21 26 15 19 19 13 20 5 11 5 15 1 4 12 18 10 24 (3) 14 3 7 4 25 29 17 35 18 31 32 31 19 38 38 26 26 9 17 18 14 (0) 12 20 32 6 (2) (9) 7 6 25 (27) (12) (30) (25) NA NA NA NA NA NA
Year Quarter 2002 4 3 2 1 2001 4 3 2 1 2000 4 3 2 1 1999 4 3 2 1 1998 4 3 2 1 1997 4 3 2 1 1996 4 3 2 1 1995 4 3 2 1 1994 4 3 2 1 1993 4 3 2 1 1992 4 3 2 1 1991 4 3 2 1
Notes: Figures should be used with caution because the sample size of the survey is relatively small, about 80 respondents but they do represent a sizable portion of the market. Small firms are defined as having sales of less than $50 million. Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the Federal Reserve Board. Small Business Economic Indicators 28