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Business Opportunities - Nonemployer Businesses

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The U.S. Census Bureau, in Nonemployer Statistics: 2003 (September 26, 2005), reported that more than 18.6 million business in the United States were operated that year by the owners alone with no other workers. (Sole proprietorships, discussed above, are businesses with a single owner that can have few or many employees.) As defined by the Census Bureau, nonemployer businesses have no paid employees, have annual receipts of at least $1,000, and are subject to federal income taxes. The 2003 national total represented growth of 5.7% over the number of nonemployer businesses counted during the previous year. Nonemployer businesses accounted for nearly $830 million in receipts during 2003 and comprised seven out of ten businesses in the United States.

Sectors that included the largest number of nonemployer businesses in 2003 were other services (which includes personal care establishments such as beauty and nail salons, as well as pet care, auto repair, and drycleaning services, among others; 2.7 million), professional, technical, and scientific services (2.6 million), construction (2.2 million), and real estate and rental and leasing (two million). Sectors that provided the largest shares of receipts among nonemployer businesses in 2003 included real estate and rental and leasing ($176 billion, or 21.2%); construction ($126.4 billion, or 15.2%); professional, scientific and technical services ($102.9 billion, or 12.4%); and retail trade ($80.5 billion, or 9.7%). Sectors with the fewest nonemployer businesses were utilities (13,862) and mining (87,931). The lowest receipts for nonemployer businesses were in utilities, with $600.4 million.

Industries that saw the highest increases in the number of nonemployer businesses from 2002 to 2003, included real estate appraisers (an increase of 19.1%), nail salons, (15.9%), landscape architects (14.6%), software publishers (14.4%), clothing accessories stores (12.9%), bed and breakfast inns (8.5%), and carpet and upholstery cleaning services (7.5%).

TABLE 9.5 Employer firm terminations by state, selected year 1990–2003 "Table 8. Employer Firm Terminations by State, 1990–2003 (Selected Years)." in Small Business Economic Indicators for 2003, U.S. Small Business Administration, Office of Advocacy, August 2004, http://www.sba.gov/advo/stats/sbei03.pdf (accessed January 8, 2006)

TABLE 9.5
Employer firm terminations by state, selected year 1990–2003
State 1990 1995 2000 2001 2002 2003 Annual percent change Rank
*Estimate.
Notes: 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. Terminations for 2002 and 2003 are estimated from 2001 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. Terminations are from prior year's March through current year's March. Employer firm estimates are the previous year figure plus the difference between termination estimates. On occasion, some state terminations result in successor firms which are not listed as new firms.
SOURCE: "Table 8. Employer Firm Terminations by State, 1990–2003 (Selected Years)." in Small Business Economic Indicators for 2003, U.S. Small Business Administration, Office of Advocacy, August 2004, http://www.sba.gov/advo/stats/sbei03.pdf (accessed January 8, 2006)
    U.S. total 531,400 497,246 542,831 553,291 569,000* 554,800*
    Yearly change (%)    (0.3) 1.9     2.8    (2.5)
    Closing rate (%)     9.7 9.8    10.1     9.8
Alabama 10,927 10,968   9,302 14,781  12,062  10,927  (9.4) 40
Alaska 3,382 2,530   2,671 2,575   2,541   2,507  (1.3) 20
Arizona 14,235 15,431  11,984 16,371  17,642  15,488 (12.2) 43
Arkansas 7,252 4,872   5,581 4,746   4,491   6,918  54.0 1
California 135,767 152,945 134,541 149,831 156,858 140,435 (10.5) 42
Colorado 12,864 17,933   7,561 6,954  10,332  13,243  28.2 3
Connecticut 11,994 11,619  11,528 11,348  11,383  11,044  (3.0) 23
Delaware 1,422 3,193   3,052 3,122   3,891   3,148 (19.1) 49
District of Columbia 3,715 3,302   4,996 4,013   3,973   3,874  (2.5) 22
Florida 54,009 52,467  55,186 54,573  52,241  56,665   8.5 7
Georgia 24,448 23,161  26,754 24,352  31,479  25,898 (17.7) 48
Hawaii 3,385 3,953   3,521 4,080   3,994   4,010   0.4 17
Idaho 3,337 4,861   6,249 5,851   7,040   6,742  (4.2) 28
Illinois 29,173 30,260  31,361 31,976  32,093  41,112  28.1 4
Indiana 10,632 14,129  15,738 15,839  16,156  15,137  (6.3) 31
Iowa 6,971 7,702   7,485 7,770   7,480   7,378  (1.4) 21
Kansas 8,788 8,387   6,981 8,055   6,876   8,392  22.0 5
Kentucky 11,276 9,307   7,508 9,883  11,614  10,801  (7.0) 35
Louisiana 10,883 11,347  13,708 13,319  14,416  12,171 (15.6) 46
Maine 4,737 4,676   4,906 5,401   5,042   4,715  (6.5) 32
Maryland 17,945 16,256  19,563 20,667  20,927  21,697   3.7 12
Massachusetts 17,539 15,417  18,164 18,268  20,532  21,870   6.5 9
Michigan 28,676 20,340  30,240 26,535  26,975  24,748  (8.3) 39
Minnesota 13,614 12,458   4,829 6,770  12,851  17,928  39.5 2
Mississippi 7,200 7,077   7,555 7,557   7,160   7,267   1.5 14
Missouri 16,674 17,588  17,580 18,188  21,653  20,190  (6.8) 33
Montana 3,453 4,066   2,435 3,881   4,445   4,679   5.3 10
Nebraska 6,144 4,645   5,234 5,394   5,234   5,050  (3.5) 25
Nevada 4,888 6,483   7,761 8,252   8,667   8,939   3.1 13
New Hampshire 6,018 5,044   7,341 5,264   5,418   4,598 (15.1) 45
New Jersey 25,538 25,667  23,950 27,890  31,571  36,827  16.6 6
New Mexico 4,943 5,240   6,451 5,495   7,949   5,770 (27.4) 51
New York 63,627 56,813  57,423 65,616  63,631  61,199  (3.8) 26
North Carolina 21,643 23,389  23,467 23,217  22,184  23,234   4.7 11
North Dakota 2,265 2,045   2,191 2,112   1,893   2,049   8.2 8
Ohio 23,863 28,091  24,276 25,460  24,269  23,544  (3.0) 24
Oklahoma 9,397 8,623   8,848 9,498   8,923   8,434  (5.5) 30
Oregon 11,921 13,022  16,102 15,512  14,793  14,194  (4.0) 27
Pennsylvania 27,929 27,254  34,893 33,426  35,859  32,917  (8.2) 38
Rhode Island 3,863 5,985   4,170 4,152   4,981   4,103 (17.6) 47
South Carolina 10,736 10,391  11,721 12,893  11,491  10,711  (6.8) 34
South Dakota 2,370 2,360   1,809 2,156   2,098   1,899  (9.5) 41
Tennessee 18,902 15,896  17,563 17,637  16,514  16,315  (1.2) 19
Texas 53,831 56,027  57,300 59,342  58,114  55,461  (4.6) 29
Utah 5,774 7,654  10,135 13,565  11,272  10,368  (8.0) 37
Vermont 2,687 2,577   2,653 2,578   3,501   2,584 (26.2) 50
Virginia 21,438 18,493  20,569 21,449  20,305  20,539   1.2 15
Washington 23,087 30,847  41,793 41,122  40,782  35,345 (13.3) 44
West Virginia 4,408 5,119   5,542 5,741   5,595   5,550  (0.8) 18
Wisconsin 11,591 13,054  15,151 14,135  13,651  12,629  (7.5) 36
Wyoming 2,900 2,735   2,908 2,969   2,895   2,921   0.9 16
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