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Friday, October 17, 2008 

Small Business Facts

For those who wonder about the small business man and his contribution to the American economy. Here are some more facts about small businesses.


What is a small business?

The Offi ce of Advocacy defi nes a small business for research
purposes as an independent business having fewer than 500
employees. Firms wishing to be designated small businesses
for government programs such as contracting must meet size
standards specifi ed by the U.S. Small Business Administration
(SBA) Offi ce of Size Standards. These standards vary by
industry; see www.sba.gov/size.


How important are small businesses to
the U.S. economy?

Small firms:
• Represent 99.7 percent of all employer firms.

• Employ about half of all private sector employees.

• Pay nearly 45 percent of total U.S. private payroll.

• Have generated 60 to 80 percent of net new jobs annually
over the last decade.

• Create more than half of nonfarm private gross domestic
product (GDP).

• Hire 40 percent of high tech workers (such as scientists,
engineers, and computer workers).

• Are 52 percent home-based and 2 percent franchises.

• Made up 97.3 percent of all identifi ed exporters and produced
28.9 percent of the known export value in FY 2006.

• Produce 13 times more patents per employee than large
patenting firms; these patents are twice as likely as large
firm patents to be among the one percent most cited.

Source: U.S. Dept. of Commerce, Bureau of the Census and International
Trade Administration; Advocacy-funded research by Kathryn Kobe, 2007
(www.sba.gov/advo/research/rs299tot.pdf) and CHI Research, 2003 (www.
sba.gov/advo/research/rs225tot.pdf); Federal Procurement Data System;
U.S. Dept. of Labor, Bureau of Labor Statistics.


How many new jobs do small firms create?

Since the mid-1990s, small businesses have created 60 to
80 percent of the net new jobs. In the most recent year with
data (2005), employer fi rms with fewer than 500 employees
created 979,102 net new jobs, or 78.9 percent. Meanwhile,
large fi rms with 500 or more employees added 262,326 net
new jobs or 21.1 percent.

For an in-depth look at employment
dynamics by firm size from 1989 to 2005, see www.sba.gov/
advo/research/data.html#us.

What is small firms’ share of employment?

Small businesses employ about half of U.S. workers. Of
116.3 million nonfarm private sector workers in 2005, small
fi rms with fewer than 500 workers employed 58.6 million and
large fi rms employed 57.7 million. Firms with fewer than 20
employees employed 21.3 million. While small fi rms create
60 to 80 percent of net new jobs, their share of employment
remains steady since some fi rms grow into large fi rms as they
create new jobs.

Source: U.S. Dept. of Commerce, Bureau of the Census.

Annual Cost of Federal Regulations by Firm Size, All Business Sectors (Dollars)
Type of Regulation Cost per Employee for Firms with:
<20 Employees 500+ Employees All Federal Regulation $7,647 $5,282
Environmental 3,296 710
Economic 2,127 2,952
Workplace 928 841
Tax Compliance 1,304 780

Source: The Impact of Federal Regulations on Small Firms, an Advocacyfunded
study by W. Mark Crain, 2005 (www.sba.gov/advo/research/rs264tot.pdf)


More information is located at the following links:

http://www.sba.gov/advo/research/?cm_sp=ExternalLink-_-Federal-_-SBA

http://www.sba.gov/tools/resourcelibrary/smallbusinessstatisticsresearch/index.html

http://www.sba.gov/advo/research/rs190tot.pdf

SO how will Obama's new tax plan aid these people. IT WON'T!!!!!

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  • From Denver, Colorado, United States
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