The number of businesses with one or more owners but no paid employees grew nationwide from 17.0 million in 2001 to more than 17.6 million in 2002, a growth rate of 3.9 percent, according to a report issued today by the U.S. Census Bureau. The rate of increase during the 2000 to 2001 period was 2.7 percent.

     The report, Nonemployer Statistics: 2002, shows that Nevada led the nation in the growth of these small businesses with a 7.4 percent increase between 2001 and 2002. Georgia slipped from first place in 2001 to second place in 2002, with a 6.3 percent increase. Florida also experienced growth of 6.3 percent. Texas and Delaware, both with 5.2 percent increases, rounded out the top five states in nonemployer business growth. (See attached table.)

     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 nonemployer businesses having significant growth between 2001 and 2002 include landscaping services (21.5 percent), janitorial services (20.4 percent), nail salons (8.7 percent), real estate agents (7.1 percent), child-care providers (5.9 percent) and beauty salons (5.6 percent).

     Four economic sectors accounted for 60 percent of nonemployer receipts — real estate and rental and leasing ($161.8 billion or 21.0 percent); construction ($115.3 billion or 15.0 percent); professional, scientific and technical services ($96.4 billion or 12.5 percent); and retail trade ($77.9 billion or 10.1 percent).

     Nationwide, receipts totaled $770.0 billion — up 5.5 percent between 2001 and 2002. The report has data on 15.4 million individual proprietorships and on more than 1.1 million corporations and l.1 million partnerships. Nonemployer firms do not cover all self-employed individuals since many self-employed business owners have paid employees.

     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.

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