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Some impressive figures on the nation's small firms
 
 


Jan Norman
The Orange County Register
April 10, 2006

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For national Small Business Week starting today, the Census Bureau shares some data: The nation has 18.6 million firms without employees, 70 percent of all U.S. businesses. These non-employee firms had total revenues of $830 billion in 2003, compared with $586 billion in 1997.

The number of non-employer businesses increased by 1 million from 2002 to 2003.

The nation had 3.9 million businesses with fewer than five employees and 1.4 million with six to nine employees in 2003.

The top industries for businesses without employees are real estate; construction; professional, scientific and technical services; and retail trade.

The top industries for businesses with fewer than 10 employees are retail; professional, scientific and technical services; construction; and health care and social services.

State saw slowdown in hiring in February

February was a slow hiring month for California businesses, according to the latest survey from SurePayroll, an online payroll processing service.

The average small business in the state grew its payroll just 0.05 percent in February, after growing 0.15 in January. The growth is slightly less than in February 2004.

The U.S. Department of Labor said U.S. businesses added 243,000 jobs in February, the 30th consecutive month of employment growth.

"That growth must be taking place in larger businesses because we are not seeing it in the small-business economy," said Michael Alter, president of SurePayroll.

Although hiring was flat, California small businesses increased salaries 0.5 percent. If that pace continues, small-business salaries statewide will grow by 18.2 percent in 2006.

"It could make life difficult for California small-business owners, who may struggle to keep up with rising costs and higher salary demands, and as a result, may have to pass along higher prices to their customers," Alter said.

Health plan legislation pending in U.S. Senate

Public acceptance of small- business health plans may depend on educational efforts to explain this lower-cost insurance that the U.S. Senate is considering in the bill S1955.

The plans would let small firms buy health insurance policies through national trade or professional associations, bypassing state rules that might mandate higher coverage.

A national survey conducted by Public Opinion Strategies and Lake Research partners gave respondents pro and con arguments for these association health plans. Eighty-eight percent said the pro argument was "very convincing" and 45 percent said the con argument against the plans was "very convincing."

Copyright © 2006. The Orange County Register.