The most common type of small business may not be what you think. When people talk about small businesses, the thing that usually comes to mind is an establishment with a couple of employees. However, the most common type of small business, by far, is one with zero paid employees. In government statistics, this kind of business is called a “nonemployer,” and they outnumber employer businesses by four to one.
The Office of Advocacy has just published a fact sheet that answers key questions about nonemployers. “A Look at Nonemployer Businesses” describes how nonemployers fit into the overall economy, where they get startup capital, the industries in which they work, and their ownership demographics. The fact sheet is based on the latest information from the U.S. Census Bureau.
Nonemployer firms are sometimes overlooked because they account for only 3 percent of total U.S. business revenue. However, the latest figures show that four in five businesses are nonemployers. As the economy changes, nonemployer firms are playing an increasingly large role—the number of nonemployers increased 58 percent from 1997 to 2015.
The Office of Advocacy has just published a fact sheet that answers key questions about nonemployers. “A Look at Nonemployer Businesses” describes how nonemployers fit into the overall economy, where they get startup capital, the industries in which they work, and their ownership demographics. The fact sheet is based on the latest information from the U.S. Census Bureau.
Nonemployer firms are sometimes overlooked because they account for only 3 percent of total U.S. business revenue. However, the latest figures show that four in five businesses are nonemployers. As the economy changes, nonemployer firms are playing an increasingly large role—the number of nonemployers increased 58 percent from 1997 to 2015.
RSS Feed
