Microbusiness Population Growth Slows in 2006
Jan 19th, 2009 | By Dawn Rivers Baker | Category: ResearchThe pace of growth in the population of U.S. businesses slowed significantly in 2006, according to new firm size data released by the SBA Office of Advocacy last week. After growing by approximately 4% in 2004 and 2005, the number of U.S. businesses increased by only 1.6% in 2006. And it appears from the data, that microbusiness employers in particular were already hurting, even though the recession was almost two years away — making them the proverbial canary in the coal mine of a looming economic downturn.
As reported back in August, nonemployers increased their numbers by 1.8% in 2006 in an unexpected and somewhat stunning reversal of what had been average annual increases in population of 4.5% from 2002 through 2005. Microbusiness employers with fewer than five employees actually decreased slightly (down 0.2%) in number, while employers with between five and nine employees increased by only 1%. Meanwhile, non-micro small businesses with between 10 and 499 employees grew by 2.8% and large firms (more than 500 employees) increased in number by 3.4%.
