Building a Business? Start Here

You have an idea.

It’s time to get serious about it.

Entrepreneurial drive got you to this point, but now it’s time to chart a plan. For that you need a reliable overview of the factors that can lead to a flourishing business — or work against it.

The U.S. Census Bureau’s Business Builder application is designed to provide small business owners with key data to give them a clear-eyed view of their potential market. This data-mapping tool combines data from the Census Bureau’s American Community Survey, Economic Census, and County Business Patterns, and the U.S. Department of Agriculture’s National Agricultural Statistics Service.

For version 2.6 of the tool, released this month, the Bureau of Labor Statistics has collaborated with the Census Bureau to include data from our Quarterly Census of Employment and Wages (QCEW). QCEW is based on quarterly mandatory reports to the Unemployment Insurance systems in each state, covering more than 95 percent of the jobs in the U.S. economy. It is the most complete and current source of data on employment and wages at a detailed geographic and industry level.

To help illustrate why this tool is so useful, and why the data from the QCEW broadens that usefulness, I’ll make up an example.

Ever since you can remember, your grandmother, who was born and raised just outside of Naples, has fed you a type of pizza full of unusual flavors that has never been equaled in all your travels. As you grew and came into your own as a cook, she entrusted you with her secret knowledge, like a magician passing along her repertoire to a favored protégé.

Ever since, you’ve dreamed of sharing the pleasures of that delicacy with the world, and you’re going to start with a pizzeria somewhere near your home in Olympia, Washington. You may ask yourself: What exactly does the restaurant market look like in Olympia? Who are my potential customers? What kind of wages do they earn?

The Census Business Builder is a good place to start.

Census Business Builder home screen

Here, you can enter the type of establishment you’d like to research, as well as the area where you intend to do business. You find that data are not available for Olympia, but knowing that Olympia is the county seat, you are able to search in Thurston County.

The resulting map provides data on income, education, wages, and perhaps most importantly for you, the number of similar establishments in the area – also known as your competition.

Map of Thurston County, Washington, showing Census Business Builder search results

With the new QCEW data, another crucial batch of information is at your fingertips: more up-to-date establishment counts, employment numbers, and wages. It also provides an important metric known as the location quotient. This measure lets you compare an industry’s employment concentration or wages in your search area with the country as a whole. Will you be able to hire enough staff? What might you need to pay them if you want the best in the business?

Map of Thurston County, Washington, showing Census Business Builder search results with QCEW location quotient

The possibilities advance from this example as far as your entrepreneurial mind wants to take them. It is you, after all, who will transform these numbers into the real-world business that fulfills your vision. Our job as public servants is to give you the most relevant tools to realize that transformation. We’re grateful for the opportunity to collaborate with the Census Bureau to bring you this vital information in this user-friendly format.

The Census Business Builder is updated twice per year using feedback that comes from customers and stakeholders, including small business owners, trade associations and other government agencies. The update also adds QCEW data into the Regional Analyst version of the tool, which is designed for chambers of commerce and regional planning staff who need a broad portrait of the people and businesses in their area. The December release, for example, will add more QCEW features to the Regional Analyst version.

BLS publishes data from the QCEW program every quarter in the County Employment and Wages news release. QCEW data are available through our Open Data Access and the QCEW Databases.