NEWSRELEASE
For Release: June 22, 2006 Business Owners As High Income Earners WASHINGTON, D.C. - Business owners in the 1990’s were more likely than wage
earners to be in households classified as high income earners and wealth
holders, according to a study released today by the Office of Advocacy of the
U.S. Small Business Administration. However, their comparative share of income
and wealth fell during the same period. “Business ownership has traditionally been a route to prosperity for
Americans,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy.
“This study confirms that the 1990’s were no different. Nonetheless, with the
market bubble of the 90’s, wage earners saw a greater increase in their income
and wealth relative to business owners.” The report,
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 06-15 ADVO
Press Kit
And Wealth Holders
The study finds that in 2001 small business-owning households were more than twice as likely as non-owning households (57.1 percent to 25.5 percent) to be high income, and over eight times more likely (21.2 percent to 2.5 percent) to be high wealth households. However, from 1992 to 2001, the chance of being in the high income category for non-owning households increased 42.5 percent, and their chance of being high wealth increased 92 percent, whereas the chances for small business-owning households increased 24.7 and 61.8 percent, respectively.
The study also examines the changes in the demographic characteristics of high income and high wealth households over the 1992-2001 period.
The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
For more information, visit the Office of Advocacy website at
www.sba.gov/advo.###
The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo, or call (202) 205-6533.