The number of businesses with no paid employees grew from more than 16.5 million in 2000 to almost 17.0 million in 2001, a rate of growth of 2.7 percent, according to the U.S. Census Bureau. The rate of increase during the 1999 to 2000 period was 2.3 percent.

     According to the report, Nonemployer Statistics: 2001 [PDF], Georgia led the nation in the growth of small businesses with a 5.2 percent increase between 2000 and 2001. Comparisons of the top five states showed Nevada slipped from first place in 2000 to second place in 2001, with a 4.8 percent increase. New York, up 4.6 percent, ranked third in 2001. Florida, with a 4.2 percent increase, was in fourth place and Texas, with an increase of 3.8 percent, rounded out the top five states in nonemployer business growth. (See attached table [Excel].

     Nationally, these small businesses make up more than 70 percent of all businesses. They may be run by one or more individuals, can range from home-based businesses to corner stores or construction contractors, and often are part-time ventures with owners operating more than one business at a time.

     Some examples of business growth are beauty salons, up 4.8 percent; child-care providers, 4.4 percent; landscaping services, 4.2 percent; barber shops, 3.6 percent; real estate agents, 2.0 percent; tax preparers, 1.8 percent; and electricians, 1.0 percent.

     Four economic sectors accounted for almost 60 percent of nonemployer receipts real estate and rental and leasing ($147.8 billion); construction ($112.3 billion); professional, scientific and technical services ($91.3 billion); and retail trade ($73.7 billion).

     The report has data on 14.8 million individual proprietorships, and on more than 1 million corporations and l million partnerships. Nonemployer firms do not cover all self-employed business owners since many of the latter have paid employees.

     Some of the detailed Internet tables show the number of establishments in nearly 300 industries and their receipts for the United States, states, counties and metropolitan areas.

     The data are subject to nonsampling error such as errors of self-classification by industry on tax forms, as well as errors of response, nonreporting and coverage. Further information about methodology and data limitations are available in the report.