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Small Business Statistics | Which are the riskiest and which are

Article:

Before starting a small business of your own, you should know

the risk factors. Which small businesses are the safest to start

and which ones are considered a risky business? With a few facts

in hand you can make a better business startup decision. The

riskier your business, the harder it is going to be to secure a

small business loan.

The lending institutions along with banks will have these

figures at hand and the kind of small business you want to start

will play heavily in your business plan and profit projections.

Did you know that according to the Small Business

Administration...

* there were approximately 22.9 million small businesses in the

U.S. in 2002.

* there were an estimated 550,100 new employer businesses in

2002 -- a 0.9 percent increase over the previous year.

* small businesses hire a larger proportion of employees who

are younger workers, older workers, and part-time workers.

* business bankruptcies were 38,155 in 2002, about half of the

level reached in the late 1980's.

Also, small businesses...

* provide approximately 75 percent of the net new jobs added to

the economy.

* represent 99.7 percent of all employers.

* employ 50.1 percent of the private work force.

* provide 40.9 percent of private sales in the country.

* account for 39.1 percent of jobs in high technology sectors

in 2001.

* account for 52 percent of private sector output in 1999.

* represent 97 percent of all U.S. exporters.

Small Business Profits from Sole Proprietorships reported in the

Business Risk Index Reports:

Of ALL the "Sole Proprietorships" in the US, 74.9% reported

profits with 25.1% reporting losses with "surveying & mapping

(except geophysical) service businesses" reporting the highest

profits at 93.7 % and "hunting and trapping businesses"

reporting the lowest with only 23.6% of these businesses showing

a profit.

Some of the safest businesses included: Residential building

construction (85.9% of these businesses reported profits)

Administrative and support services (84.6% of these businesses

reported profits)

Home health care services (83.5% of these businesses reported

profits)

Personal and laundry services (81.5% of these businesses

reported profits)

In the mid range of profits reported the businesses included:

61.4% of Wood Product businesses claimed profits

57.6% of Performing Arts businesses claimed profits

50.7% of Miscellaneous Store retailers claimed profits

The riskiest businesses included: Scenic and sightseeing

transportation businesses (66.2% of these businesses claimed

losses) Computer and electronic product businesses (64.6% of

these businesses claimed losses) Commodity contracts brokers and

dealers (63.4% of these businesses claimed losses) Video tape

and disc rental businesses (51.6% of these businesses claimed

losses)

(More of these facts can be found at: www.bizstats.com and the

Today's Popular Articles

• Business Plan Software: Do You Need It?

• Running a Successful Home Based Business on the Web

SBA at www.sba.gov)

Small Business Survival Rates | Small Business Openings &

Closings:

*There were 572,900 new businesses, and 554,800*business

closures. *Two-thirds of new employer firms survive at least two

years, and about half survive at least four.

*66% of new establishments started in 1998 were still operating

two years after they started; 44% were still operating four

years later in 2002. Findings do not differ greatly across

industrial sectors.

Source: U.S. Small Business Administration, June 2004. *Not all

closures were due to bankruptcies. Survival and Longevity in the

Business Employment Dynamics Data, which appears in the May 2005

edition of Monthly Labor Review.

Entrepreneurship among seniors is growing.

In 2002, the rate of self-employment for the workforce was 10.2%

(13.8 million workers), but the rate for workers aged 50 was

16.4% (5.6 million workers). Although those age 50 made up 25%

of the workforce, they comprised 40 of the self-employed. Solo

business formation in the future will be driven by people who

take early retirement or whose jobs just disappear. Source:

AARP/Rand Corp. "Self-employment and the 50 Population"

About the author:

About the Author: Rebecca Game is the founder of Digital Women,

an online community for women in business. A 30 year

entrepreneur and dedicated to helping other women. Visit her

site: Loans

for Women

http://loans.digital-women.com