New report favorable to small businesses

Small business drives Connecticut's economy, according to a new report released by the Office of Advocacy. The report reveals that over 97 percent of Connecticut businesses are small; they create all of the net new jobs and they employ over 50 percent of its nonfarm private employees. Women and minority

The number of employer businesses in 2002 decreased by 0.2 percent and numbered 96,677. The number of selfemployed individuals increased an estimated 3.0 percent in 2002. In the state, 97.3 percent of the businesses were small, with fewer that 500 employees.

In 2002, self-employed women totaled 42,951, or 35.1 percent of selfemployed workers in the state. Women-owned businesses totaled 72,400, of which 15.3 percent had employees. They generated $9.3 billion in revenues in 1997. Minority-owned businesses represented 7.2 percent of the state's businesses and generated $4.6 billion in revenues in 1997. Of these minority-owned businesses, 21.6 percent had employees.

Looking at the employment picture in Connecticut, businesses with fewer than 500 workers employed 50.2 percent of the state's 1,546,250 non-farm sector employees in 2000. The industries with the most small business employees were health care and social assistance. Between 1999 and 2000, small business added a net total of 29,256 employees; they represented all of the net non-farm employment change in the state.

Small business income in the state reflect the fact that nonfarm proprietors' income, a partial measure of small business income, increased by 436 percent in 2002 and amounted to $12.4 billion. Small businesses traditionally depend on local bank services and use commercial bank lenders. The number of banks in the state has increased. The largest concentration of banks by asset size was in the $100 million to $500 million category.

Between 2001 and 2002, new employer firms decreased 3.8 percent to 8,726. Business bankruptcies increased by 16.0 percent and totaled 181 in 2002. Business terminations increased by 0.3 percent and totaled 11,383 in 2002.

To obtain more information about the Office of Advocacy's data, research reports and analyses of small businesses, go to www.sba.gov/advo/stats or call 202-205-6530.