Small Businesses: This is for YOU!

This week is National Small Business Week, which recognizes the critical contributions of America’s small business owners and workers to our economy. The U.S. economy is fueled by small businesses, which employ about 69 million workers!

Here at the U.S. Bureau of Labor Statistics, we work closely with small businesses every day in two main ways:

  • Small businesses participate in our voluntary statistical surveys, so thanks for your cooperation!
  • BLS data help small businesses make smart decisions.

To celebrate Small Business Week, this blog shares some information about small businesses in our current economy and some testimonials from small business owners who use BLS data.

“As the owner of All Things Career Consulting (and a self-proclaimed data geek), I spend a lot of time working with organizations to develop recruiting programs. I also provide individual coaching on navigating career change, especially military transitions. What I like about BLS data is that they help me tell my clients a story about the labor force. It’s important for both employers and employees to understand what jobs are growing and how things such as the unemployment rate impact the job market. So many times people run with a myth that they have heard without digging into the data to find the truth. BLS data help them to set realistic expectations about job prospects, as well as salaries and benefits.” --Lisa Parrott, Owner (Overland Park, Kansas)

 

What is a small business?

We define small establishments as establishments with fewer than 100 workers. What is an establishment? It’s the physical location of an economic activity—for example, a factory, mine, store, or office. An establishment is not necessarily a firm; it may be a branch plant, for example, or a warehouse. Thus, small establishments may include a “mom and pop” grocery store or a small storage facility.“My company, Cornerstone Macro, provides timely analysis of macroeconomic trends to institutional investors. The Bureau’s comprehensive, reliable, and objective statistics – from employment, to inflation, to productivity – are essential to our understanding of the cyclical and secular forces shaping the investment landscape. Without these data, we would not be able to provide best-in-class research to our customers.” --Nancy R. Lazar, Co-Founder (New York, New York)

What is the source of these data?

Each quarter we publish counts of employment and wages reported by employers. These counts, from the Quarterly Census of Employment and Wages, cover more than 97 percent of U.S. jobs. We have detail available at the county, metropolitan area, state, and national levels by industry.

So the quarterly census doesn’t cover every worker in the United States, but it is very close!

How many small businesses are there and how many people do they employ?

Percent distribution of establishments and employment by size of establishment, private sector, March 2017

Editor’s note: Data for this chart are available in the table below.

Highlights:

  • About 69 million workers—57 percent of all private sector workers—were employed in over 9 million small establishments during March 2017.
  • Small establishments make up over 97 percent of all establishments in the nation. The remaining establishments (181,000), those with 100 or more workers, employed over 51 million workers.
  • A whopping 62 percent of establishments fall within the smallest size class, fewer than 5 employees.

“My company, Piedmont Grocery Co., has been a family owned independent purveyor of fine foods and spirits in Oakland, CA since 1902. We use the Bureau’s consumer price indexes to calculate inflation rates that are used to determine incremental rent increases. Without these timely and objective stats, we could potentially be paying more for our rent than is necessary.” --Amy Pence, Vice President (Oakland, California)

In what industries do we find small businesses?

Percentage of private employment in each industry that is in small establishments, March 2017

Editor’s note: Data for this chart are available in the table below.

Highlights:

  • Employment in small establishments varies among industries.
  • Real estate and rental and leasing, construction, and wholesale trade have much of their employment in small establishments. It’s more than 80 percent in real estate and rental and leasing.
  • In contrast, 36 percent of manufacturing employment and 43 percent of transportation and warehousing employment are in small establishments.

“QED Consulting provides consulting and training in Leadership, Ethics, Culture, Diversity, & Inclusion to global Fortune 500 companies, governments, and international organizations. We use the Bureau’s data on demographic trends to illustrate the need for organizational policies that make diversity and inclusion work. These objective statistics assist us to help our clients be best in class in terms of diversity and inclusion.” --Alan Richter, Founder and President (New York, New York)

Want to learn more about small businesses? Check out the most recent news release to get all the latest numbers. See our Frequently Asked Questions, or contact us at (202) 691-6567 or by email.

Thank you, small businesses, for your participation and know that we are here to help you in your statistical needs. Happy Small Business Week!

 

Percent distribution of establishments and employment by size of establishment, private sector, March 2017
Establishment size Establishments Employment
Fewer than 5 employees 62% 7%
5–9 employees 15 8
10–19 employees 11 11
20–49 employees 7 18
50–99 employees 2 13
100 or more employees 2 43
Percentage of private employment in each industry that is in small establishments, March 2017
Industry Percent
Real estate and rental and leasing 82%
Construction 74
Wholesale trade 71
Retail trade 64
Services 59
Mining 51
Finance and insurance 51
Transportation and warehousing 43
Manufacturing 36

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>