LEGISLATIVE
SBA’S ADVOCATES CONNECT
ORANGE COUNTY’S CONCERNS TO WASHINGTON
SMALL BUSINESS FACTS
THE ROLE OF MICROBUSINESS EMPLOYERS IN THE ECONOMY August, 2017. By Brian Headd, Economist
I
n California, economic
business are the research and
is directly linked regulatory functions. Chartgrowth 1: Microbusiness Firm and Employment Shares to small business.
Employer With nearlyFirms four million small businesses and seven million
Advocacy’s Office of Economic
Employment
Research is the government’s preeminent data house for
100
20-99
Microbusiness employers (firms with 1-9 employees) are the most common kind of employer firm, but they account for a relatively small share of employment.
small business employees,
America’s 3.8 million microbusiness employers made up 74.8 percent of all private-sector employers in 2016, and they provided 10.3 percent of the private-sector jobs (Chart 1). In addition to the microbusiness employers, there were another 24 million nonemployer businesses in 2015.
100-499 At the U.S. Small Business
minority and veteran owned
Administration’s Office of
business reports.
Advocacy, we play a significant Microbusinesses
Microbusinesses Our office though is most noted
(Source: Bureau of Labor Statistics, Business Employment Dynamics, Census Bureau, Nonemployer statistics)
10-19 the state’s economic fortunes 1-4 business. We release numerous depend on the growth of Employeespieces of research annually such 20-99 enterprises. these as state economic profiles and 500+
role in supporting America’s business community. While many small business owners exclusively think of the SBA
Microbusiness employers’ share of employment is declining. Microbusiness employers’ share of private-sector employment dropped from over 14 percent in 1985 to 11 percent (or 13 million employees) in 2014 (Chart 2). (Source: Census Bureau, Business Dynamics Statistics, Initial Firm Size)
Most microbusiness employer firms are more than five years old. In 2014, 64 percent of microbusinesses were over five years old, and these firms held 67 percent of the microbusiness employment. (Source: Census Bureau, Business Dynamics Statistics, Initial Firm Size)
Microbusiness employers accounted for 11 percent of the 13.7 million private-sector net job gains from 2010 to mid-2016, with 70 percent of the microbusiness employers gains coming from business turnover (new firm job gains minus closure job losses) as opposed to existing firms. (Source: Bureau of Labor Statistics, Business Employment Dynamics)
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NOCChamber.com
500+
5-9 for its work in the regulatory Employeesarena. Mitigating regulatory actions on behalf of the
small business community Chart 2: Microbusiness Employment Share Trend for loan guarantees. SBA’s is a primary focus of our Office Percentof Advocacy focuses on mission. The sheer enormity regulations impacting small 16% of federal government rules business. If federal rules and and regulations can often be regulations negatively impact 14% overwhelming for the general your business, we can help. public not knowing where to turn Advocacy was created by 12%
for support. Advocacy acts as
Congress to be the voice
your voice in Washington.
of small business. We are 10%
Reducing the regulatory
an independent office that represents small business 8%
before 1985Congress, 1990the White 1995 House, federal agencies and the federal courts.
Microbusiness hiring has an oversized role in employment
information pertaining -499 to small
burden has been a focus of the Trump Administration and
2000the President 20005 has issued 2010 two2015 important executive orders
on regulation. The first is for Advocacy works with Finance, Insurance andfederal Real Estate has the highest share of microbusinesses. each new regulation proposed; agencies to find alternatives the administration wants to to proposed rules that In 2014, the “finance, insurance and real estate” highestThe share of takeindustry two offhad thethe books. are disproportionately microbusiness employers at 86 percent and “agriculture, forestry, and fishing second is each agency must burdensome (minus farms)”to hadsmall the highest share of employment 31 percent. engageat a task force to root out business. The office maintains unnecessary, irrelevant, and several specific roles, but redundant regulations. (Source:most Censuspertinent Bureau, Business Dynamics Statistics, Initial Firm Size) those to your As I’ve traveled through
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