are "mom & pops" thriving, dying or hanging on?
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Are Small Businesses in the U.S. Thriving, Dying or Hanging On?
Source: http://www.census.gov/econ/susb/index.html
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The Big Question:
Are Small Businesses in the U.S.
a. Thriving,b. Dying, orc. Hanging On?
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First, let’s look at how they stack up in terms of:
Number of Employers (Firms)
Number of Employees
Estimated Receipts
Avg. Wage (Payroll)
Efficiency (Receipts per Employee)
Receipt Growth Rate
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Then, we’ll see whether small businesses in some industries
are faring better than in others
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But First:Defining Different Firm Size
Groups• Firms:
– “Non-Employers” – 0 Employees – “Micro” – < 10 Employees– “Small” – 10-99 Employees– “Medium” – 100-499 Employees– “Large” – 500+ Employees
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Question #1
“How many more small businesses are there compared to large businesses in the U.S.?”
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A: For every 1 firm with more than 100 employees, there are 55 with less than 100 employees
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Question #2
“Overall, do more people in the U.S. work in small businesses or large ones?”
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A: For every 5 employees working at a company with less than 100 employees, there are 9 working at a company
with more than 100 employees
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Question #3
“On average, how much more money does a large business receive compared to a small one?”
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A: For every $1,000 received by a company with less than 100 employees, a company with more than 100
employees receives $157,000 per year
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Question #4
“Recently, which has been growing faster: small businesses or large ones?”
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A: Between 1992 and 2007, the largest firms (>500 employees) nearly doubled their receipts, while small firms
(<100 employees) lagged inflation
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The Big Get Bigger (1992-2007)Growth of U.S. Private Firms, by Size (Number of Employees) 1992-2007
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Question #5
“Who pays employees better, large businesses or small ones?”
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A: In 2007, an employee of a large firm earned 33% more per year than an employee of a micro firm, on average
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Question #6
“Who is more efficient with their workforce: large businesses or small ones?”
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A: In 2007, large firms pulled in 53% more per employee than micro firms, on average
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So, to summarize so far:
• In 2007:– HALF of U.S. employees work for– less than HALF a percent (0.30%) of
all firms (LARGE Ones), that bring in:– more than 95% of the Receipts– which have grown at twice the rate of
small businesses since 1992
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But…
Are there some industries in which small businesses are faring better than in others?
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Question #7
“Have small businesses been growing faster in some industries as compared to others?”
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A: Between 2002 and 2007, Wholesale Trade, Construction, Health care, and Professional Services grew
the most
Growth of Small Businesses (<100 Employees), by Industry (2002-2007)
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Question #8
“Are there some industries where small businesses make much more than in others?”
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A: In 2007, Utilities and Wholesale trade Small Businesses brought in the most per firm, on average
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To Answer the Big Question
• By and large, Small Businesses in the U.S. are barely hanging on, while
• There are some industries in which small businesses are thriving
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• Thanks, and Happy Crunching!!
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