Annual Report of the 

Office of Economic Research 

FY 2018
Website advocacy.sba.gov

Email advocacy@sba.gov

Facebook www.facebook.com/AdvocacySBA

Twitter www.twitter.com/AdvocacySBA

The Office of Advocacy of the U.S. Small Business Administration was created by Congress 

in 1976 to be an independent voice for small business within the federal government. The 

office is led by the Chief Counsel for Advocacy who is appointed by the President and 

confirmed by the U.S. Senate. The chief counsel advances the views, concerns, and interests 

of small business before the White House, Congress, federal agencies, federal courts, and 

state policymakers. The office relies on economic research, policy analyses, and small 

business outreach to identify issues of small business concern. Regional and national 

advocates around the country and an office in Washington, D.C., support the chief 

counsel’s efforts.

Information about Advocacy’s initiatives on behalf of small businesses is accessible via the 

website; three Listservs (regulatory communications, news, and research); and social media 

including LinkedIn, Twitter, and Facebook.
Annual Report of the Office of Economic Research, FY 2018 Page 1 

Foreword 

In 1976, at a time when there were hardly any data or research on small businesses, Public Law 

94-305 established the Office of Advocacy within the U.S. Small Business Administration to 

“examine the role of small business within the American economy.” Since that time, the Office 

of Economic Research (OER) within the Office of Advocacy has carried out this mandate by 

producing research reports on small business issues, disseminating statistics on small business 

contributions to the economy, and sponsoring the production of publicly available economic 

datasets on small businesses. Through economic studies, issue briefs, profiles, and fact sheets, 

OER’s work has provided a foundation for policymakers, researchers, and the public in

understanding the importance of small businesses to the U.S. economy. 

In fiscal year 2018, OER conducted research on a variety of important small business topics, 

including profiles of small businesses by state, business turnover, employment, finance,

minority business ownership, and regulation. OER also continued its role in making small 

business data and statistics more accessible through working with the U.S. Census Bureau. In 

2018, the Office of Advocacy continued its partial funding of the production of small business 

economic data in the longstanding data series, Statistics of U.S. Businesses, which included a 

new breakdown of small business data by congressional district, and sponsored a pilot initiative

on business owner demographic data of non-employers, a smaller and commonly overlooked

type of small business, to better track and count the number of women-owned, minorityowned, and veteran-owned businesses in the U.S. moving forward.

The office also continued its Small Business Economic Research Forum series on cutting-edge 

small business research. Additionally, OER economists were active presenters at several events 

throughout the year, and they worked with Office of Advocacy attorneys to emphasize sound 

economic analysis of small business impacts in the regulatory development process. 

Further, in 2018, OER was instrumental in Advocacy’s effort to conduct outreach, work with 

interagency partners, and develop analysis of small business impacts and priorities of the 

NAFTA renegotiation which resulted in the United States-Mexico-Canada Agreement (USMCA), 

a pending free trade agreement between the three countries. 

With a near constant need for more timely small data and research in policymaking, OER is an

integral part of Advocacy’s work on behalf of small businesses, and remains committed to being 

a valuable resource towards creating policies that foster small business growth and success. 

Major L. Clark, III Patrick Delehanty

Acting Chief Counsel for Advocacy Acting Director of Economic Research
Annual Report of the Office of Economic Research, FY 2018 Page 2 

Contents 

Foreword......................................................................................................................................... 1

Contents.......................................................................................................................................... 2

Introduction .................................................................................................................................... 3

Advocacy Research Reports, FY 2018 ............................................................................................. 5

Business Turnover....................................................................................................................... 5

Business Dynamics...................................................................................................................... 5

Employment................................................................................................................................ 6

Finance........................................................................................................................................ 7

General Small Business Topics.................................................................................................... 8

Minority Business Ownership................................................................................................... 10

Regulation ................................................................................................................................. 11

Small Business Economic Research Forums................................................................................. 12

Data Access................................................................................................................................... 15

Appendixes Selected Publications from the Office of Economic Research, FY 2018 .................. 19

Appendix A: Small Business Profiles for the States and Territories: United States................. 20

Appendix B: What’s New with Small Business?........................................................................ 24

Appendix C: Small Business Facts: Finding Qualified Workers................................................ 25
Annual Report of the Office of Economic Research, FY 2018 Page 3 

Introduction

The Office of Economic Research (OER) within the Office of Advocacy of the U.S. Small Business

Administration has the special responsibility of being the only federal office statutorily tasked 

with examining small business challenges and contributions in the U.S. economy.

1 

In fiscal year 2018, OER continued to provide timely and relevant small business research to its 

stakeholders. For the first time, OER disseminated economic data on the number of small 

businesses, employment, and payroll by congressional district. OER conducted research on 

several important topics that included: 

• Business Turnover

• Employment

• Finance

• Minority Business Ownership

• Regulation

This report summarizes all research products and lists all presentations from the OER-hosted 

Small Business Economic Research Forum in FY 2018, as well as provides a current overview of

publicly available economic data on small businesses. OER’s publications continued to

emphasize reproducibility and transparency, timely research, and visualizations of complex 

information and analysis in digestible ways. Three examples are presented in an appendix to

this report.

2

In FY 2018, OER’s research included economic bulletins on the latest small business

data, economic studies on important small business issues, and fact sheets and briefs on timely

small business topics. 

Along with conducting research in-house, OER regularly funds small business economic

research by contracting with subject matter experts in the field on important small business

topics through a competitive bid process. OER’s research contract program provides an

opportunity to leverage the expertise of top economists and researchers to develop research

reports. For more information about economic research funding opportunities, visit 

FedBizOpps at www.FBO.gov and search for solicitations from SBA Office of Advocacy, or sign

up on Advocacy’s listserv to receive announcements at advocacy.sba.gov/about/contact-us/.

1 Public Law 94-305, 1976. 2 “Small Business Profiles for the States and Territories: United States” (Appendix A); “What’s New with Small 

Business?” (Appendix B); and “Finding Qualified Workers” (Appendix C). 
Annual Report of the Office of Economic Research, FY 2018 Page 4 

OER partners with the U.S. Census Bureau to produce and disseminate small business data on 

their economic contributions and importance to policymakers across industries and geographic 

areas. Since the 1990s, the Office of Advocacy and the Census Bureau have partnered to 

produce an annual economic data series on small businesses called the Statistics of U.S. 

Businesses.

3 This data series is the main data used by policymakers, researchers, and industry 

for small business statistics, research, and policy analysis. 

To access OER research, please visit advocacy.sba.gov/category/research/, navigable by the 

following categories: 

• Facts About Small Business (OER infographics, FAQs, bulletins, and fact sheets), 

• State Profiles (OER’s annual publication on small business statistics by state), 

• Economic Reports (issue briefs and contracted economic studies), and 

• Data on Small Business (links to the main pubic datasets for assessing the small business 

economy). 

3 U.S. Census Bureau, Statistics of US Businesses, https://www.census.gov/programs-surveys/susb.html. 
Annual Report of the Office of Economic Research, FY 2018 Page 5 

Advocacy Research Reports, FY 2018 

This report lists and summarizes all 20 publications produced by the Office of Economic 

Research for FY 2018, and presentations from OER’s Small Business Economic Research Forum. 

The publications are listed by subject with the newest items first.

Business Turnover

Business Dynamics

Author: Daniel Wilmoth, Advocacy Economist

Released: September 2018 

Description: This fact sheet describes the rates at which establishments have been opening 

and closing. Almost all of the business establishments that open and close each 

year employ fewer than 20 workers. At the end of 2017, the number of 

establishments with employees that had opened in the past year exceeded the 

number that had closed by about

118,000. With a net contribution 

of about 38,000 establishments,

California alone accounted for 

nearly a third of the national 

increase. Annual openings have 

exceeded closings for the last 28 

consecutive quarters. 

Why Do Businesses Close?

Author: Brian Headd, Advocacy Economist

Released: May 2018 

Description: Over the last 25 years, about 7–9 percent of employer firms close every year and 

a slightly higher share open. These figures from Census’s Business Dynamics 

Statistics have been trending down, illustrating a decline in business turnover. 

According to the Annual Survey of Entrepreneurs, the top reasons for businesses

closing in 2015 were low sales, the owner(s) retiring, the owner(s) selling the 

business, opening another firm, and illness/injury. Many owners report closing

for personal or health reasons rather than business reasons.
Annual Report of the Office of Economic Research, FY 2018 Page 6 

Employment

Finding Qualified Workers

Author: Daniel Wilmoth, Advocacy Economist

Released: September 2018

Description: A tight labor market is good news if you are looking for work but bad news if you 

are looking for workers. The Office of Advocacy has published a new fact sheet 

on the problem for small businesses of finding qualified workers. The job 

openings rate is the share of jobs that are unfilled. The unemployment rate is 

the share of the labor force without jobs. Since March of 2018, the job openings 

rate has exceeded the unemployment rate. When members of the National 

Federation of Independent Business were surveyed in August of 2018 about their 

biggest problems, the most common answer was difficulty finding qualified 

workers.

Small Business Economic Data by Congressional District 

Author: U.S. Census Bureau data funded by the Office of Advocacy 

Released: September 2018

Description: This new dataset provides the number of employer businesses, employment, 

and payroll by business size, industry, and congressional district. 

Small Business Quarterly Bulletin

Author: Office of Economic Research

Released: September 2018

Description: This bulletin shows upticks in income, jobs, and new businesses. Small business

lending remains flat, even with low loan delinquency rates. The quarterly 

provides the latest government statistics on small business income, job creation, 

startups, and finance. 

Small Business Quarterly Bulletin

Author: Office of Economic Research

Released: March 2018

Description: This bulletin provides an update on the small business sector with the latest 

available data on 

employer firms, 

proprietor’s 

income, job 

creation, births 

and deaths and

finance. 
Annual Report of the Office of Economic Research, FY 2018 Page 7 

Finance

Small Business Lending in the United States, 2016

Author: Victoria Williams, Advocacy Economist

Released: September 2018 

Description: This report examines lending of $1 million or less for commercial purposes by 

depository lending institutions. The report and summary cover national small 

business lending trends. The accompanying data tables (in pdf format) list the 

top lenders providing small 

business loans in each state. 

Small business stakeholders can 

use the extended data tables 

(in Excel format) to research 

the small business lending of 

banks in their states. The Data 

Description appendix describes 

the tables in detail. The study is 

based on the Consolidated 

Reports of Condition and 

Income (Call Reports) for 2016 

and Community Reinvestment 

Act (CRA) data for 2015 from 

the Federal Financial 

Institutions Examination 

Council. 

One Year of Equity Crowdfunding: Initial Market Developments and Trends 

Author: Lindsay Abate, Advocacy Economist

Released: March 2018

Description: This issue brief analyzes Securities and Exchange Commission filing data to

identify trends in small business crowdfunding activity following the

implementation of the Commission’s new securities-based crowdfunding rule 

Regulation Crowdfunding. It highlights key attributes of the firms that have 

attempted to raise capital through this type of crowdfunding, including firm 

location, legal structure, age, and employment. It describes trends among the 

online intermediaries responsible for hosting the campaigns, as well as 

transactional characteristics, such as the type of securities offered and the 

amount of capital sought and successfully raised.
Annual Report of the Office of Economic Research, FY 2018 Page 8 

Financing Patterns and Credit Market Experiences: A Comparison by Race and Ethnicity for 

U.S. Employer Firms

Author: Alicia Robb, Robb Consulting

Released: February 2018 

Description: This study examines racial and ethnic differences in financing patterns, access to 

capital, and credit market experiences among U.S. employer firms. Using data 

from the U.S. Census Bureau’s 2014 Annual Survey of Entrepreneurs (ASE), this 

report sheds light on the ongoing financing challenges facing minority 

entrepreneurs nearly a decade after the financial crisis, and highlights 

differences in financing amounts, financing sources, attempted funding 

relationships, avoidance of financing, and the impact of financing on firm 

profitability and closure across ethnic and racial demographics.

How Did Bank Lending to Small Business in the United States Fare After the Financial Crisis?

Author: Rebel Cole, Krahenbuhl Global Consulting

Released: January 2018

Description: This study examines the health of the small business credit market after the 

financial crisis. Bank credit is the form of credit most commonly used by small 

businesses, and it contracted sharply during the financial crisis years of 2009-

2011. Building upon previous literature, this study is a follow-up to the author’s 

2012 study, demonstrating that the decline in bank lending was much more 

acute for small businesses than for larger firms during and after the crisis. 

General Small Business Topics

State Rankings by Small Business Economic Indicators

Author: Office of Economic Research 

Released: September 2018

Description: This new publication ranks the top ten states for 20 economic indicators related 

to small business economic activity, along with providing comparative data for 

the rankings of small business economic indicators for all 50 states and the 

District of Columbia. 

Small Business Data Resources

Author: Office of Economic Research 

Released: August 2018

Description: This updated research tool for small business researchers and policymakers lists 

databases by federal agency or private sector source with hyperlinks to their 
Page 9 

websites organized by small business-related topic. The databases listed provide 

a wealth of information from federal government agencies, as well as 

nongovernment private sector, university, nonprofit, international, and other 

sources. Key topics include demographics, employment, exports, finance, firm 

size data, firms and establishments, health care, income and sales, pension 

coverage, taxes, and training. 

Annual Report of the Office of Economic Research, FY 2017

Author: Office of Economic Research 

Released: August 2018

Description: The Office of Advocacy’s FY 2017 Annual Report of the Office of Economic 

Research details the research publications produced and small business 

economic research forums held in fiscal year 2017. OER participated in 

numerous roundtables and conferences, and produced timely and relevant small 

business research illuminating the economic landscape for small businesses. To 

meet the needs of small business stakeholders, OER highlighted the 

contributions and challenges of small businesses in the following topics: Access 

to Capital, Employment, Regulation, Women and Veteran Business Ownership. 

What’s New with Small Business?

Author: Office of Economic Research 

Released: August 2018

Description: This one-page visual piece 

illustrates the FAQ’s key small 

business facts in a precise, 

digestible and colorful fashion. 

Frequently Asked Questions About Small 

Business

Author: Office of Economic Research 

Released: August 2018

Description: The Office of Advocacy’s updated Frequently Asked Questions About Small 

Business provides answers to common questions about small businesses. This 

new four-pager is a guide to better understand small businesses’ status and role 

in the economy. 

Annual Report of the Office of Economic Research, FY 2018 
Annual Report of the Office of Economic Research, FY 2018 Page 10

2018 Small Business Profiles for the States and Territories 

Author: Office of Economic Research 

Released: April 2018

Description: The Small Business Profiles are an annual portrait of each state’s small 

businesses. They gather the latest federal data into state-by-state snapshots of 

small business health and economic activity. Limited economic data is also 

provided for the U.S. territories.

A Look at Nonemployer Businesses

Author: Office of Economic Research 

Released: August 2018 

Description: This fact sheet presents the latest facts on nonemployers, small businesses

without employees. It includes statistics on the number and share of 

nonemployer businesses in the U.S. as well as their characteristics and their 

owners’ characteristics.

Minority Business Ownership

Latino Business Ownership: Contributions and Barriers for U.S.-Born and Immigrant Latino 

Entrepreneurs

Author: Robert Fairlie, Economic Consulting

Released: January 2018 

Description: This study evaluates differences in 

business ownership among nativeborn and immigrant Latino men and 

women compared to non-minorities. 

It uses statistical techniques to 

understand how much of these 

disparities can be attributed to 

differing population characteristics

like age, wealth, and educational 

attainment. 
Annual Report of the Office of Economic Research, FY 2018 Page 11

Regulation

Examining Small Business Impacts in the Regulatory Development Process: The Drawbacks of 

Averaging

Author: Michael McManus, Advocacy 

Economist

Released: August 2018 

Description: This issue brief shows how 

separating aggregated small 

business data into more detailed 

size groupings for regulatory 

impact analyses can help ensure 

that regulatory objectives can be 

achieved without unduly 

burdening the smallest 

businesses. 

Report on the Regulatory Flexibility Act, FY 2017

Author: Office of Advocacy

Released: February 2018 

Description: Advocacy’s Report on the Regulatory Flexibility Act summarizes federal agencies’

compliance with considering small businesses in their rulemakings in FY2017. 

OER and Advocacy’s Interagency Affairs attorneys worked to evaluate the

economic analyses of federal agency rules, emphasizing sound economic analysis 

and understanding of small business impacts and cost-effective alternative 

approaches. The report provides the regulatory cost savings achieved for small 

businesses in FY 2017 through Advocacy’s efforts. 
Annual Report of the Office of Economic Research, FY 2018 Page 12

Small Business Economic Research Forums

The Office of Economic Research hosted six Small Business Economic Research Forums in FY 

2018. These forums are useful in keeping Advocacy’s staff and stakeholders abreast of current

research and data from other agencies and researchers. Knowledgeable experts presented on 

key economic topics on emerging or current issues affecting small businesses. A list of SBERF for 

this fiscal year follows with the most recent appearing first.

A Career as a Small Business Researcher Focusing on Business Owner Demographics

Speaker: Dr. Robert Fairlie, Professor of Economics, University of California, Santa Cruz; 

Research Associate, NBER

Date: September 13, 2018 

Description: Fairlie is a highly regarded researcher in the field of small business research, 

particularly in minority and women entrepreneurship. In addition to his 

research, he has made big contributions to small business data by working with

BLS to capture incorporated self-employed data, and developing the Kauffman 

Entrepreneurial Index. Fairlie has produced many research projects for the 

Office of Advocacy and his findings have assisted Advocacy in representing small 

businesses.

A Discussion on Small Business Finance and Disaster Assistance with Hurricane Katrina as an 

Example

Speakers: George Haynes, Agricultural Policy Specialist Extension Economics, 

Montana State University

Claire Kramer Mills, Assistant VP & Community Affairs Officer Outreach & 

Education, Federal Reserve Bank of New York

Date: August 8, 2018 

Description: Small businesses use financing to start, grow, smooth revenue shortfalls, and 

recover from disasters. The lack of data on small business financing through the 

business cycle and natural disasters made it difficult for policymakers to support

the small business sector in good times and in bad. The Federal Reserve Bank of 

New York recently heeded the call for data and developed the Small Business 

Credit Survey (SBCS) spearheaded by Claire Kramer Mills. George Haynes 

provides a great example of how finance data can be used to better understand 

the plight of small businesses as they try to weather the storm and government 

efforts meant to support them.
Annual Report of the Office of Economic Research, FY 2018 Page 13

A Discussion on Rural Economic Development 

Speakers: Joe Kapp, President and CEO National Center for Resource Development

 Erik Pages, Founder EntreWorks Consulting

Ray Daffner, Entrepreneurial Development Manager, Appalachian Regional 

Commission

Date: July 18, 2018

Description: Rural areas in the U.S. are in flux and often seeking companies or industries to

improve their economies. Because rural areas have specific strengths and 

weaknesses, their approach to economic development may differ from urban 

areas. This presentation showcased three leaders in the rural economic 

development field from three differing perspectives: Joe Kapp, the doer, Erik 

Pages, the researcher and Ray Daffner, the practitioner. Joe co-founded the 

National Center for Resource Development to develop entrepreneurial 

ecosystems. Erik’s EntreWorks has worked in 40 states, “helping communities 

and organizations achieve their entrepreneurial potential.” And Ray leads the 

entrepreneurial efforts for a Federal agency supporting rural economic 

development, the Appalachian Regional Commission. Joe, Erik and Ray

described economic development in rural areas and the associated challenges in 

supporting an ecosystem amenable to startups and growing businesses. They 

also showed the role that entrepreneurship can play in reviving/maintaining 

rural areas.

A Discussion on Industrial Organization and Small Business

Speakers: Robert Feinberg, Professor of Economics, Department of Economics, American 

University

Wally Mullin, Associate Professor of Economics, Department of Economics, 

Columbian College, George Washington University

Date: April 17, 2018

Description: Industrial organization is the main field in economics that focuses on small 

businesses. This gives industrial organization economists a great lens into the 

role small businesses play in competition and how small businesses fit into the 

macro economy through innovation and productivity. Washington, D.C. is home 

to two top industrial organization economists, Robert Feinberg and Wally Mullin. 

Both have practical experience garnered from stints at the top policy 

organizations; Council of Economic Advisors, Antitrust Division of the 

Department of Justice and the International Trade Commission. Bob and Wally 
Annual Report of the Office of Economic Research, FY 2018 Page 14

discussed how their current research relates to small businesses, and put their

previous research on antitrust enforcement, international competition, 

guaranteed minimum income, market power, and stock prices into a small 

business perspective. 

Census Bureau Changing Collection of Business Data: Opportunity to Comment 

Speakers: Aneta Erdie, Assistant Division Chief, Governments and Business Owners 

Programs, Economic Reimbursable Surveys Division (ERD), U.S. Census Bureau

Javier Miranda, Principal Economist, Center for Administrative Record & 

Applications (CARRA), U.S. Census Bureau

Date: December 11, 2017

Description: Changes underway to streamline and reduce respondent burden of Census’s 

business surveys offer an opportunity for data users to provide input on what is 

being improved and what is being lost. Census discussed the nascent American 

Business Survey (ABS) as a consolidation of the Survey of Business Owners (SBO),

Annual Survey of Entrepreneurs (ASE), and Business R&D and Innovation for 

Microbusinesses (BRDI-M). ABS will be released annually but unfortunately at 

the cost of excluding nonemployer businesses. Census also presented plans to 

develop a “big data” solution for some information on nonemployers lost from 

the SBO. If approved, it will offer annual demographics data on the owners of 

nonemployer businesses with detailed geographic and industry information. 

Timely Data to Understand Small Businesses 

Speaker: Kevin Cooksey, Branch Chief, Business Employment Dynamics, Bureau of Labor 

Statistics

Adrianna Rockford, Director, Advanced Analytics Services Dun & Bradstreet

Date: October 26, 2017

Description: To follow the current small business economy, timely data is necessary. Two of 

the better “tools” to do this are from the Bureau of Labor Statistics (BLS) and 

Dun & Bradstreet. Kevin presented and discussed BLS’ Business Employment 

Dynamics (BED) data series, which tracks business job creation and destruction, 

including births and deaths on a quarterly basis. BED includes series by firm and 

establishment size, which are crucial to understanding the small business labor 

market. Adrianna presented and discussed Dun & Bradstreet’s analytics 

capability such as evaluating disaster areas or firms’ credit. In addition, both 

presenters illuminated the new directions that their data programs can go.
Annual Report of the Office of Economic Research, FY 2018 Page 15

Data Access 

Although not a data collection agency, the Office of Advocacy continues to make economic data 

on small businesses available on its website. Both small businesses with and without 

employees, small employers and non-employers, are covered in the data. A large percentage of 

small businesses are non-employer firms, but employer firms contain a larger share of the 

receipts. The vast majority of employer firms are small firms, but for comparison purposes, data

are also provided on large firms. The Office of Advocacy defines a small business for research 

purposes as an independent business having fewer than 500 employees.

In addition, bank lending data to small businesses is also compiled by the Office of Advocacy. 

While the employment size of a firm is used to define a small business in industry data, the 

banking data uses loan size. Business loans of $1 million or less is defined as a small business 

loan in the banking data as opposed to the size of the firm. 

All of these data are provided in a user-friendly format that allows researchers, policymakers, 

small business trade associations, small businesses, and the press the ability to examine the 

role and status of small businesses in the economy. 

Small Business Data Resources

Advocacy’s list of important small business economic datasets, Small Business Data Resources,

is a useful guide for small business researchers and policymakers. This valuable research tool 

lists small business databases by both federal agencies and the private sector with links to their 

websites. Data series cover a range of key topics such as demographics, employment, exports, 

finance, firm size data, health care, taxes, pension coverage, and training. The list captures 

many of the most widely used data resources, but Advocacy notes that inclusion of any specific 

database on the list does not constitute an endorsement by the Office of Advocacy or the Small 

Business Administration.

Small Business Economic Data 

Advocacy defines a small business as an independent business having fewer than 500 

employees, and makes small business data from several sources available on its website. Data 

on employer firms by size of business are provided annually in Census Bureau’s Statistics of U.S. 

Businesses (SUSB) and Business Dynamics Statistics (BDS) data series, as well as quarterly in the 

Bureau of Labor Statistics Business Employment Dynamics (BED) program. Non-employer data 

are available annually from the Census Bureau’s Non-Employer Statistics (NES) program. BDS 
Annual Report of the Office of Economic Research, FY 2018 Page 16

and BED also provide data on age of business. All of the data programs are based on the 

universe of private-sector businesses in the U.S. 

Detailed data on owner and business characteristics are available from the Annual Survey of 

Entrepreneurs (ASE) conducted by the Census Bureau, which going forward has been renamed 

the Annual Business Survey (ABS) and combined with other surveys. Before the ASE, the Census 

Bureau’s Survey of Business Owners (SBO) provided data on business characteristics and 

business owner demographic characteristics in years ending in 2 and 7. 

Statistics of U.S. Businesses

Annually, the Office of Advocacy partially funds the Statistics of U.S. Businesses (SUSB) 

program, an employer firm size data series produced by the U.S. Census Bureau. An employer

firm is defined as an aggregation of all establishments owned by a parent company. The SUSB’s

employer data include the number of firms, number of establishments, employment, and

annual payroll for employment firm size categories by location and industry. In addition to firm 

size data, receipt data and size categories are available, but only in years ending in 2 or 7. 

The data also consist of static and dynamic data. Static data provide a “snapshot” of firms at a 

point in time, while dynamic data follow firms from year to year and report job creation and 

destruction as well as business births and deaths. Much of the data is listed in time series 

format with some data available as far back as 1988, but the latest data available lags a few 

years. 

Industry information is available at the NAICS 6-digit level, meaning that data is available for 

over 1,000 industries. Geographic data for some of the data items is also available at the county

and metropolitan statistical area level, but this data tends to be aggregated to a relatively high 

industry level. 
Annual Report of the Office of Economic Research, FY 2018 Page 17

Business Dynamics Statistics

Census Bureau’s Business Dynamics Statistics (BDS) provides another source of employer firm 

data, but by the age of the firm. BDS contains annual data for states, major industry, and some 

metropolitan statistical area data. BDS provides historical data going back to 1977, but the most 

current data lags a few years. BDS provides the number of firms, establishments, and 

employment by firm age, along with some dynamics so firm and job creation can be analyzed. 

Business Employment Dynamics 

The Bureau of Labor Statistics’ Business Employment Dynamics (BED) data program provides 

quarterly data with a focus on employment changes from establishment entry, growth, decline, 

and exit. BLS presents the data in two ways to capture seasonal firms by listing establishment

openings—establishments that did not 

exist in the previous quarter—and 

establishment births—establishments 

that did not exist in the previous year. 

Classifications are similar for closings and 

deaths. Some employment data are by 

firm size such as in job creation and 

destruction tables, but much of BED is 

establishment-based and does not 

contain an establishment or firm size 

component. These quarterly data date 

from 1992. 

Nonemployer Statistics

Census Bureau’s Nonemployer Statistics provides data on the number of businesses without 

employees and receipts by state, metropolitan statistical area, and county with industry detail. 

A nonemployer firm is defined as one that has no paid employees, has annual business receipts 

of $1,000 or more, and is subject to federal income taxes. Nonemployers account for about 

three percent of business receipts, and about 80 percent of all businesses. Note that nonemployer businesses can have more than one owner and are a business. Thus, referring to 

nonemployers as self-employed (which is a class of worker) is not entirely accurate. 

Annual Survey of Entrepreneurs 

Census Bureau’s Annual Survey of Entrepreneurs (ASE) is an annual survey that provides 

information on the demographic characteristics for employer businesses and their owners. 
Annual Report of the Office of Economic Research, FY 2018 Page 18

Data is provided on the number of employer businesses, receipts, annual payroll, and 

employment by gender, race, ethnicity, and veteran status. Industry information is available at 

the 2-digit NAICS level for demographic and veteran status by state, and the top 50 

metropolitan statistical areas. Data in this series are available for 2014, 2015, and 2016.

Call Report and Community Reinvestment Act Data

The Federal Deposit Insurance Corporation provides comprehensive banking data for all FDIC 

insured institutions on a quarterly basis. Unlike the previous databases mentioned, the 

definition of a small business differs since it is defined by loan size as oppose to the size of the 

firm. Both the Call Report and CRA data define a small business loan as loans of $1 million or 

less. The data contains the lending institution’s name, geographic location, loan size, and 

assets. 

Other Small Business Data Sources

Other small business data sources used to study small businesses are: The American 

Community Survey (ACS), Current Population Survey (CPS), and Survey of Consumer Finances 

(SCF). The ACS is a yearly household survey that is conducted by the Census Bureau that 

provides information on jobs, occupations, and education attainments in the U.S. The Current 

Population Survey (CPS) is a household monthly survey that is conducted by the Census Bureau, 

and contains supplemental data on earnings, education, health insurance coverage, contingent

workers, unemployment insurance, and veteran status. The Survey of Consumer Finances (SCF) 

is a household survey that is normally sponsored by the Federal Reserve in cooperation with 

the Department of the Treasury every three years. This survey provides information on the 

balance sheets, pensions, income, and demographic characteristics of U.S. families over time. 
Annual Report of the Office of Economic Research, FY 2018 Page 19

Appendixes

Selected Publications from the Office of Economic Research, FY 2018

Appendix A: Small Business Profiles for the States and Territories: United States, ................ 20

Appendix B: What’s New with Small Business? ........................................................................ 24

Appendix C: Small Business Facts: Finding Qualified Workers , ............................................... 25
UNITED STATES

30.2 million Small Businesses 58.9 million Small Business Employees 

99.9% of United States Businesses 47.5% of United States Employees 

EMPLOYMENT

1.9 million

net new jobs 

DIVERSITY

8.0 million

minority-owned 

businesses 

TRADE

287,835

small business 

exporters 

OVERALL UNITED STATES ECONOMY

• Multiple economic indicators consistently signaled a strengthening US economy in 2017. In the third quarter of 2017, the

United States grew at an annual rate of 3.4%. The United States’s 2016 growth rate of 1.5% was down from the 2015 rate

of 2.7%. (Source: BEA)

• The employment situation in the United States continued to improve. In February 2018, the unemployment rate was 4.1%,

down from 4.7% in February 2017. (Source: CPS)

EMPLOYMENT

Figure 1: United States Employment by Business Size
 

(Employees)
 

fewer than 20

20 to 99

100 to 499

more than 500

0

20M

40M

60M

80M

100M

120M

2000 2005 2010 2015

• United States small businesses employed 58.9 million people, or 47.5% of the private workforce, in 2015. (Source:

SUSB)

• Firms with fewer than 100 employees have the largest share

of small business employment. Figure 1 provides further

details on firms with employees. (Source: SUSB)

• Private-sector employment increased 1.8% during the 12­

month period ending in February 2018. This was above the

increase of 1.0% during the prior 12-month period. (Source:

CPS)

• The number of proprietors increased in 2016 by 2.3% relative to the previous year. (Source: BEA)

• Small businesses created 1.9 million net jobs in 2015. Firms

employing fewer than 20 employees experienced the largest

gains, adding 1.1 million net jobs. The smallest gains were

in firms employing 100 to 499 employees, which added

387,874 net jobs. (Source: SUSB)

The Small Business Profiles are produced by the US Small Business Administration’s Office of Advocacy. Each report incorporates the most up-to-date 

government data to present a unique snapshot of small businesses. Small businesses are defined for this profile as firms employing fewer than 500 

employees. Net small business job change, minority small business ownership, and exporter share statistics are based on the 2015 Statistics of US 

Businesses (SUSB), 2012 Survey of Business Owners (SBO), and 2015 International Trade Administration (ITA) data, respectively. 

SBA Office of Advocacy	 1 United States Small Business Profile, 2018 

Appendix A: Small Business Profiles for the States and Territories: United States

Annual Report of the Office of Economic Research, FY 2018 Page 20
INCOME AND FINANCE

• The number of banks decreased by 271 between June 2016 and June 2017 to 5,787 banks. (Source: FDIC)

• In 2016, 5.7 million loans under $100,000 (valued at $82.6 billion) were issued by United States lending institutions reporting

under the Community Reinvestment Act. (Source: FFIEC)

• The median income for individuals self-employed at their own incorporated businesses was $50,347 in 2016. For individuals

self-employed at their own unincorporated firms, this figure was $23,060. (Source: ACS)

Median income represents earnings from all sources. Unincorporated self-employment income includes unpaid family workers, a very small percent of 

the unincorporated self-employed. 

EMPLOYER BUSINESS OWNER DEMOGRAPHICS

Figure 2: United States Employees per Business by Owner’s Demographic, 2015 

Male

Female

Nonminority

Minority

Nonveteran

Veteran

Some other race

Native American-Alaskan

Hispanic

Hawaiian-Pacific Islander

Asian

African American

All Firms

0 2 4 6 8 10 12

Figure 2 shows the average number of employees per employer business by owner’s demographic group according to the Annual Survey of Entrepreneurs 

(ASE). 

TURNOVER AMONG ESTABLISHMENTS WITH EMPLOYEES

Figure 3: United States Quarterly Startups and Exits
 

160K

180K

200K

220K

240K

1995 2000 2005 2010 2015

startups exits

• In the third quarter of 2016, 240,000 establishments started

up, generating 872,000 new jobs in the United States. Startups are counted when business establishments hire at

least one employee for the first time. (Source: BDM)

• In the same period, 215,000 establishments exited resulting

in 749,000 jobs lost. Exits occur when establishments go

from having at least one employee to having none, and then

remain closed for at least one year. (Source: BDM)

• Figure 3 displays quarterly startups and exits from 1992 to

2016. Each series is smoothed across multiple quarters to

highlight long-run trends. (Source: BDM)

The BLS data covers only business establishments with employees. BLS 

refers to startups as births and exits as deaths. These terms are distinct 

from the BLS openings and closings categories. Openings include seasonal re-openings and closings include seasonal shutterings. Quarterly 

startup and exit values may not align with Figure 3 due to smoothing. 

SBA Office of Advocacy	 2 United States Small Business Profile, 2018 

Annual Report of the Office of Economic Research, FY 2018 Page 21
INTERNATIONAL TRADE

• A total of 294,834 companies exported goods from the United States in 2015. Of these, 287,835, or 97.6%, were small

firms; they generated 32.9% of the United States’s $1.3 trillion in total exports. (Source: ITA)

SMALL BUSINESS EMPLOYMENT BY INDUSTRY AND COUNTY

Table 1: United States Employment by Industry, 2015 

Industry Small Business Total Private Small Business 

Employment Employment Employment Share 

Health Care and Social Assistance 8,687,568 19,221,864 45.2 

Accommodation and Food Services 7,997,654 13,196,892 60.6 

Retail Trade 5,514,378 15,704,167 35.1 

Manufacturing 5,155,086 11,605,501 44.4 

Professional, Scientific, and Technical Services 5,075,601 8,798,260 57.7 

Construction 4,944,116 6,008,286 82.3 

Other Services (except Public Administration) 4,626,826 5,401,233 85.7 

Administrative, Support, and Waste Management 3,625,057 11,112,465 32.6 

Wholesale Trade 3,486,807 6,076,109 57.4 

Finance and Insurance 1,920,066 6,135,914 31.3 

Transportation and Warehousing 1,650,009 4,616,568 35.7 

Educational Services 1,603,707 3,642,170 44.0 

Real Estate and Rental and Leasing 1,410,530 2,065,427 68.3 

Arts, Entertainment, and Recreation 1,370,194 2,230,822 61.4 

Information 897,225 3,394,317 26.4 

Management of Companies and Enterprises 404,386 3,308,759 12.2 

Mining, Quarrying, and Oil and Gas Extraction 296,005 743,660 39.8 

Agriculture, Forestry, and Fishing and Hunting 136,254 160,144 85.1 

Utilities 112,523 639,234 17.6 

Industries not classified 24,155 24,155 100.0 

Total 58,938,147 124,085,947 47.5

Figure 4: United States Small Business Employment by County, 2015 

Small Business Employment (%)

16 to 50 50 to 60 60 to 74 74 to 100

SBA Office of Advocacy 3 United States Small Business Profile, 2018 

Annual Report of the Office of Economic Research, FY 2018 Page 22
SMALL BUSINESSES BY INDUSTRY

Table 2: United States Small Businesses by Industry and Firm Size, 2015
 

Industry 1-499 Employees 1-20 Employees Nonemployer Total Small Firms

Firms 

Professional, Scientific, and Technical Services 796,737 747,952 3,410,855 4,207,592 

Other Services (except Public Administration) 680,783 635,810 3,695,012 4,375,795 

Construction 668,196 615,701 2,430,014 3,098,210 

Health Care and Social Assistance 652,900 569,088 1,978,850 2,631,750 

Retail Trade 650,133 594,267 1,985,553 2,635,686 

Accommodation and Food Services 515,566 401,142 371,413 886,979 

Administrative, Support, and Waste Management 331,964 295,202 2,069,144 2,401,108 

Wholesale Trade 304,031 262,019 417,272 721,303 

Real Estate and Rental and Leasing 290,173 277,338 2,635,780 2,925,953 

Manufacturing 247,961 187,862 355,467 603,428 

Finance and Insurance 235,726 218,939 718,472 954,198 

Transportation and Warehousing 177,150 157,974 1,528,264 1,705,414 

Arts, Entertainment, and Recreation 122,089 106,357 1,341,733 1,463,822 

Educational Services 88,826 70,210 710,383 799,209 

Information 73,028 63,321 328,995 402,023 

Mining, Quarrying, and Oil and Gas Extraction 21,657 18,157 98,134 119,791 

Agriculture, Forestry, and Fishing and Hunting 21,584 20,212 236,094 257,678 

Utilities 5,706 4,493 19,968 25,674 

Total 5,881,267 5,265,682 24,331,403 30,212,670

Figure 4 and Tables 1 and 2 display data from the 2015 SUSB. Table 2 includes additional data from the 2015 Nonemployer Statistics (NES). Data for 

counties shown in white in Figure 4 were withheld by the Census Bureau because they do not meet publication standards or could disclose information 

regarding individual businesses. 

REFERENCES

The Small Business Profiles, source data, and methodology are available at https://go.usa.gov/xQT4w. 

ASE Annual Survey of Entrepreneurs, 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 

CPS Current Population Survey, BLS 

FDIC Call Reports, Federal Deposit Insurance Corporation 

FFIEC Federal Financial Institutions Examination Council 

ITA International Trade Administration, US Department of Commerce 

NES Nonemployer Statistics, US Census Bureau 

SBO Survey of Business Owners, US Census Bureau 

SUSB Statistics of US Businesses, US Census Bureau 

SBA Office of Advocacy 4 United States Small Business Profile, 2018 

Annual Report of the Office of Economic Research, FY 2018 Page 23
SMALL BUSINESSES COMPRISE:

ALL FIRMS

with paid

employees

ALL 

FIRMS

EXPORTING 

FIRMS

KNOWN EXPORT 

VALUE

PRIVATE 

SECTOR 

EMPLOYEES 

PRIVATE

SECTOR

PAYROLL

August, 2018

WHAT IS A SMALL BUSINESS?

BED, [2000-2017]

Small

businesses

accounted

for 66%

of net

new jobs.

NUMBER OF FIRMS

SBO

[2012]

15M

20M 19.2M

8.0M

273K 1.9M 2.5M 2.6M 3.3M 2.5M

9.9M

14.8M

10M

5M

Nonminority Minority American

Indian and

Alaska Native

Asian Veteran Equally

Male/

Woman

Owned

Black or

African

American

Hispanic Woman

Owned

Male

Owned

BDS

[2015]

396K CLOSURES 414K STARTUPS*

* A startup

is a firm

that is less

than one

year old.

30.2M SMALL BUSINESSES IN THE U.S.

NES Nonemployer Statistics

BDS Business Dynamics Statistics

SBO Survey of Business Owners

SUSB Statistics of US Businesses

US CENSUS BUREAU

BED Business Employment Dynamics, 

Bureau of Labor Statistics

ITA International Trade Administration, 

US Department of Commerce

66 %

NET NEW JOBS

NET NEW JOBS

SUSB, NES [2015], ITA [2015]

99.9% 99.7% 32.9% 97.6% 47.5% 40.8%

A small business is an independent business with 

fewer than 500 employees.

20% Paid 

 employees

SUSB, NES

[2015]

80% No 

employees

For even more information

visit www.sba.gov/advocacy

Appendix B: What’s New with Small Business?

Annual Report of the Office of Economic Research, FY 2018 Page 24
Appendix C: Small Business Facts: Finding Qualified Workers

SMALL BUSINESS FACTS

FINDING QUALIFIED WORKERS

September 2018 ~ By Daniel Wilmoth, PhD

The job openings rate exceeds the unemployment rate. 

The job openings rate is the share of jobs that are unfilled. The 

unemployment rate is the share of the labor force without jobs. Since 

March of this year, the job openings rate has exceeded the unemployment 

rate. The latest estimate of the job openings rate is 4.4 percent, while the 

latest estimate of the unemployment rate is only 3.9 percent. 

Small businesses are struggling to fill job openings. 

The National Federal of Independent Business (NFIB) surveys a sample of its 

members each month, and the survey includes questions about hiring. The 

share of respondents reporting job opening that they are unable to fill has 

risen from 8 percent in 2009 to 38 percent in August of this year. 

Many small businesses say that finding qualified workers is 

their biggest problem. 

The NFIB survey asks respondents to identify their most important 

problems. In August of this year, common answers included government 

regulations, at 13 percent, and taxes, at 15 percent. However, the most 

common answer was difficulty finding qualified workers, at 25 percent. 

That value is the record high for the share of respondents saying that 

finding qualified workers is their single most important problem.

Annual Report of the Office of Economic Research, FY 2018 Page 25