File Name: 2020-Small-Business-Economic-Profile-US.pdf
File Size: 1.95 MB
File Type: Application/pdf
Last Modified: 7 months
Last checked: 8 days ago!
This Document Has Been Certified by a Professional
We recommend downloading this file onto your computer
U.S. SMALL BUSINESS ADMINISTRATION 2020 Small Business Proﬁle REGULATION RESEARCH OUTREACHUnited States 31.7 million Small Businesses 60.6 million Small Business Employees 99.9% of United States Businesses 47.1% of United States Employees DIVERSITY TRADE EMPLOYMENT 1.6 million 5.2 million 285,334 self–employed small business net new jobs minorities exportersA note on COVID–19: This report uses the most up-to-date government data to present a unique snapshot of small businesses. The BLSemployment estimates capture the early stages of the pandemic. All other sources reflect data collected prior to the pandemic
Overall Economy• In the fourth quarter of 2019, the United States grew at an annual rate of 2.1%. The United States’ 2019 overall growth rate of 2.3% was down from the 2018 rate of 2.9%. (Source: BEA)• In April 2020, the unemployment rate was 14.7%, up from 3.6% in April 2019. (Source: CPS) Employment Figure 1: United States Employment by Business Size • United States small businesses employed 60.6 million (Employees) people, or 47.1% of the private workforce, in 2017
120M (Source: SUSB) • Firms with 20 to 99 employees have the largest share of 100M small business employment. Figure 1 provides further details on firms with employees. (Source: SUSB) more than 500 • Private-sector employment decreased 14.6% during the 80M 12-month period ending in April 2020. This was below the increase of 1.6% during the prior 12-month period
60M (Source: CES) 100 to 499 • The number of proprietors increased in 2018 by 3.1% rel- 40M ative to the previous year. (Source: BEA) 20 to 99 • Small businesses created 1.6 million net jobs in 2019
20M Firms employing fewer than 20 employees experienced fewer than 20 the largest gains, adding 1.1 million net jobs. The small- est gains were in firms employing 100 to 499 employees, 0 which added 249,900 net jobs. (Source: BDM) 2000 2005 2010 2015The Small Business Profiles are produced by the US Small Business Administration’s Office of Advocacy (http://advocacy.sba.gov). Theseprofiles define small businesses as firms with fewer than 500 employees. Net small business job change, self–employed minorities, andexporter share statistics are based on 2019 Business Employment Dynamics (BDM), 2018 American Community Survey (ACS), and 2018International Trade Administration (ITA) data, respectively
SBA Office of Advocacy 1 United States Small Business Profile, 2020 Income and Finance• The median income for self–employed individuals at their own incorporated businesses was $51,816 in 2018. For self– employed individuals at their own unincorporated firms, median income was $26,084. (Source: ACS)• The total number of banks decreased by 239 between June 2018 and June 2019 to 5,303 banks. During the same period, the number of banks with assets under $1 billion decreased by 261 to 4,511 banks. (Source: FDIC)• In 2018, United States lending institutions reporting under the Community Reinvestment Act issued 6.6 million loans under $100,000, a total value of $98.2 billion. (Source: FFIEC)Median income represents earnings from all sources. Unincorporated self–employment income includes unpaid family workers, a verysmall percent of the unincorporated self-employed. The decline in the number of banks with assets under $1 billion may exceed thechange in the total number of banks due to mergers and asset balance changes
Self–Employment Demographics Figure 2: United States Self–Employment Rates by Gender & Demographic, 2018 African American Asian Hispanic Other RaceTwo or More Races Female (%) Veteran Nonveteran Male (%) Minority Nonminority All Workers 0 2 4 6 8 10 12Figure 2 shows the self–employment rate for each demographic group by gender according to the 2018 American Community Survey(ACS). Other Race includes those who selected Alaska Native, American Indian, Native Hawaiian, Pacific Islander, or Some Other Race
Turnover among Establishments with Employees Figure 3: United States Quarterly Startups and Exits • In the fourth quarter of 2018, 249,000 establishments started up, generating 863,000 new jobs in the United States. Startups are counted when business establish- 200K ments hire at least one employee for the first time
(Source: BDM) Startups 100K • In the same period, 222,000 establishments exited, result- ing in 762,000 jobs lost. Exits occur when establishments Net New Establishments go from having at least one employee to having none, and then remain closed for at least one year. (Source: BDM) 0 • Figure 3 displays quarterly startups and exits from 1993 to 2018. Each series is smoothed across multiple quarters to -100K highlight long-run trends. (Source: BDM) Exits The BDM data covers only business establishments with employees
BDM refers to startups as births and exits as deaths. These terms -200K are distinct from the BDM openings and closings categories. Open- ings include seasonal re-openings and closings include seasonal shutterings. Quarterly startup and exit values may not align with 1995 2000 2005 2010 2015 Figure 3 due to smoothing
SBA Office of Advocacy 2 United States Small Business Profile, 2020 International Trade• A total of 292,793 firms exported goods from the United States in 2018. Of these, 285,334, or 97.5%, were small firms, which generated 32.0% of the United States’ $1.5 trillion in total exports. (Source: ITA) Small Business Employment by Industry and Self–Employment by County Table 1: United States Employment by Industry, 2017 Industry Small Business Total Private Small Business Employment Employment Employment Share Health Care and Social Assistance 8,984,159 20,241,438 44.4 Accommodation and Food Services 8,542,661 14,088,211 60.6 Retail Trade 5,526,296 15,705,808 35.2 Construction 5,373,702 6,533,061 82.3 Professional, Scientific, and Technical Services 5,190,980 8,905,549 58.3 Manufacturing 5,039,772 11,721,785 43.0 Other Services (except Public Administration) 4,697,878 5,534,978 84.9 Administrative, Support, and Waste Management 3,754,463 11,897,056 31.6 Wholesale Trade 3,413,157 6,115,476 55.8 Finance and Insurance 1,909,993 6,408,168 29.8 Transportation and Warehousing 1,685,388 4,866,282 34.6 Educational Services 1,645,962 3,688,541 44.6 Real Estate and Rental and Leasing 1,451,546 2,148,006 67.6 Arts, Entertainment, and Recreation 1,428,531 2,368,928 60.3 Information 984,379 3,507,966 28.1 Management of Companies and Enterprises 423,295 3,462,498 12.2 Mining, Quarrying, and Oil and Gas Extraction 244,367 578,098 42.3 Agriculture, Forestry, and Fishing and Hunting 136,591 164,046 83.3 Utilities 111,747 644,703 17.3 Industries Not Classified 11,214 11,214 100.0 Total 60,556,081 128,591,812 47.1 Figure 4: United States Self–Employment Rates by County, 2018 self-employment (%) 0.0 up to 8.1 8.1 up to 10.0 10.0 up to 13.1 13.1 to 47.4SBA Office of Advocacy 3 United States Small Business Profile, 2020 Small Businesses by Industry Table 2: United States Small Businesses by Industry and Firm Size, 2017 Industry 1–19 Employees 1–499 Nonemployer Total Small Employees Firms Firms Other Services (except Public Administration) 649,612 695,268 3,740,305 4,435,573 Professional, Scientific, and Technical Services 757,638 807,932 3,535,071 4,343,003 Construction 643,304 700,393 2,494,089 3,194,482 Real Estate and Rental and Leasing 295,084 308,106 2,784,753 3,092,859 Retail Trade 589,200 645,685 2,093,459 2,739,144 Health Care and Social Assistance 561,991 650,689 1,941,097 2,591,786 Administrative, Support, and Waste Management 305,247 343,791 2,143,437 2,487,228 Transportation and Warehousing 163,167 182,688 2,205,648 2,388,336 Arts, Entertainment, and Recreation 112,643 129,287 1,436,152 1,565,439 Finance and Insurance 220,285 236,657 732,196 968,853 Accommodation and Food Services 413,464 537,443 402,772 940,215 Educational Services 73,163 92,148 741,870 834,018 Wholesale Trade 253,458 294,909 399,261 694,170 Manufacturing 185,612 244,098 348,476 592,574 Information 67,876 78,430 349,905 428,335 Agriculture, Forestry, and Fishing and Hunting 21,184 22,535 250,537 273,072 Mining, Quarrying, and Oil and Gas Extraction 15,808 18,720 88,882 107,602 Utilities 4,535 5,752 13,761 19,513 Total 5,339,918 5,976,761 25,701,671 31,678,432Tables 1 and 2 display data from the 2017 Statistics of U.S. Businesses (SUSB). Table 2 includes additional data from the 2017 NonemployerStatistics (NES). Figure 4 provides estimates of the rate of self–employment among employed civilians, 16 years and over, including bothincorporated and unincorporated businesses, from the 2018 American Community Survey (ACS). Data for areas shown in white in Figure 4were withheld by the Census Bureau because they do not meet publication standards or could disclose information regarding individualbusinesses
ReferencesThe Small Business Profiles, source data, and methodology are available at https://go.usa.gov/xvSPA
ACS American Community Survey, US Census Bureau BEA Bureau of Economic Analysis, US Department of Commerce BDM Business Employment Dynamics, BLS BLS Bureau of Labor Statistics, US Department of Labor CES Current Employment Statistics, BLS CPS Current Population Survey, BLS FDIC Federal Deposit Insurance Corporation FFIEC Federal Financial Institutions Examination Council ITA International Trade Administration, US Department of Commerce NES Nonemployer Statistics, US Census Bureau SUSB Statistics of US Businesses, US Census BureauSBA Office of Advocacy 4 United States Small Business Profile, 2020
SBA Officeof Advocacy 1 United States Small Business Profile, 2020. Startups Exits Net New Establishments-200K-100K 0 100K 200K 1995 2000 2005 2010 2015. All Workers Nonminority Minority Nonveteran Veteran Two or More Races Other Race Hispanic Asian African American 0 2 4 6 8 10 12. Female (%)
2020 Small Business Profiles For The States And Territories By Office of Advocacy On May 20, 2020 Advocacy’s Small Business Profiles are an annual portrait of each state’s small businesses. Included in each are snapshots into each state’s small business health and economic activity.
United States 32.5 million small businesses 61.2 million small business employees 99.9 percent of US businesses 46.8 percent of US employees 50 60 Percent Share of employees working at small businesses by state Source of data: Statistics of US Businesses (Census)
Some economic data is also supplied for U.S. territories. This year’s profiles report on state economic growth and employment. The data included in each profile answers the following questions: How many small businesses are in my state? How many jobs do they create? Which industries have the most small businesses and small business jobs?
These profiles define small businesses as firms with fewer than 500 employees. Net small business job change, self–employed minorities, and exporter share statistics are based on 2019 Business Employment Dynamics (BDM), 2018 American Community Survey (ACS), and 2018 International Trade Administration (ITA) data, respectively.