More than half (56%) of the U.S. workforce in private industry is employed in business establishments with fewer than 100 employees [Bureau of the Census 1997; Wiatrowski 1994]. Of all U.S. private industry establishments, 98% employ fewer than 100 employees, and more than 87% employ fewer than 20 employees. Prevention of occupational injury and illness is often difficult in these establishments because small businesses generally have few safety and health resources, cannot usually hire staff devoted to safety and health activities, and often lack the ability to identify occupational hazards and conduct surveillance [Wiatrowski 1994; Pedersen and Sieber 1988]. The National Institute for Occupational Safety and Health (NIOSH) recognizes these special challenges to safety and health in small business establishments. As a result, this investigation was conducted to characterize the risk of occupational injury, illness, and fatality associated with industries composed mostly of small business establishments. The three primary objectives of this investigation were as follows:
Ranking small business industries on the basis of occupational injury, illness, and fatality data should prove useful to a broad audience, including occupational safety and health practitioners, the small business community (owners, managers, and employees), labor officials, trade associations, product suppliers, and local and State health agencies. This document is especially intended for identifying high-risk small business industries that may warrant further investigation, additional hazard characterization, or risk assessment. Ultimately, this information is intended to promote prevention activities targeting industries with the greatest need.
Of all private industry establishments operating in 1994 in the United States, 98% (6.38 million) employed fewer than 100 employees, and more than 87% (5.66 million) employed fewer than 20 workers. Table 1 shows the number and percentage of employees in establishments with fewer than 100, 20, and 10 employees in 1994.
These statistics are given in terms of business establishmentsnot companies. An establishment is an individual business location such as a fast-food restaurant. In contrast, a company consists of all establishments under common ownership or control, such as a chain of fast-food restaurants owned by a single employer. The Bureau of the Census [1998] reports that the 6.5 million private establishments operating in the United States in 1994 were owned by 5.3 million companies. This figure indicates that most companies own only a single establishment, but multi- establishment companies may have a disproportionate impact. Although 56% of the U.S. private workforce is employed by establishments with fewer than 100 employees, only 38% is employed by companies with fewer than 100 employees [Bureau of the Census 1997].
Statistics about establishment size are generally the most appropriate for this report, since regulations and guidelines usually apply to individual establishments at a given business location. When we refer to resources available to an employer, company size might be more relevant. This distinction is important when comparing statistics from different agencies. For example, the U.S. Small Business Administration (SBA) defines small business in terms of company size, not establishment size.
TABLE 1. |
Number and percentage of employees in establishments with fewer than 100, 20, and 10 employees, by industry division in 1994 |
||||||
Industry division |
Number of employees* |
<100 employees |
<20 employees |
<10 employees |
|||
Number |
% |
Number |
% |
Number |
% |
||
Agriculture |
551,507 |
478,147 |
87 |
336,800 |
61 |
215,612 |
39 |
Mining |
607,721 |
>272,655 |
>45 |
>100,747 |
>17 |
>47,306 |
>8 |
Construction |
4,709,379 |
3,716,851 |
79 |
2,150,840 |
46 |
1,336,954 |
28 |
Manufacturing |
18,098,123 |
5,393,542 |
30 |
1,501,576 |
8 |
684,653 |
4 |
Transportation, communications, and public utilities |
5,713,515 |
2,637,978 |
46 |
1,024,351 |
18 |
551,853 |
10 |
Wholesale trade |
6,365,973 |
4,681,038 |
74 |
2,254,753 |
35 |
1,193,682 |
19 |
Retail trade |
20,320,266 |
15,457,780 |
76 |
6,929,207 |
34 |
3,770,063 |
19 |
Finance, insurance, and real estate |
7,002,431 |
4,149,983 |
59 |
2,262,835 |
32 |
1,388,866 |
20 |
Services |
33,253,032 |
16,616,313 |
50 |
8,726,606 |
26 |
5,370,812 |
16 |
Total |
96,733,300 |
>53,404,287 |
>55 |
>25,287,715 |
>26 |
>14,559,801 |
>15 |
Source: Bureau of the Census County Business Patterns 1994. |
OSHA conducted a similar but broader survey of more than 7,000 establishments in 1990 [ORA 1993]. They determined that of 5.3 million establishments with 85 million employees, only 6.3% had a medical surveillance program. The category of smallest business establishments (1 to 19 employees) had the fewest establishments with a medical surveillance program (3.8 %), followed by those with 20 to 99 employees (14.4%), those with 100 to 249 employees (33.4%), and those with 250 or more employees (55.8%).
Strategies for Increasing Occupational Health ServicesOn an international level, the importance of setting safety and health priorities for small businesses has also been recognized. Within the European Union, increasing emphasis is being placed on providing education, training, and additional support to small and medium-sized enterprises for improving the recognition, communication, and prevention of hazards in these establishments [Hunter et al. 1995]. Rather than introducing legislation and enforcing regulations, the European Commission for a Fourth European Union Action Programme on Safety, Hygiene, and Health at Work has focused on information campaigns for small and medium-sized enterprises in a program called Safety Actions for Europe (SAFE) [Rogers 1995].
More than 30 years ago, the Surgeon General suggested that to provide occupational health services, health surveillance, and industrial hygiene and safety support to small business establishments, occupational safety and health programs should be established at the local level in county and city health departments [DHEW 1966]. Despite this recommendation, a 199293 survey conducted by the National Association of County and City Health Officials found that only 20% of local health departments provided occupational safety and health services directly; 4% did so by contract, and 76% provided no occupational safety and health services [NACCHO 1995].
Although the report to the Surgeon General focused on providing workers with occupational health services, others have addressed small business establishment owners, operators, and franchise managers [Finch 1977; Frazis et al. 1995; Personick and Windau 1995; Tuskes and Key 1988; Wiatrowski 1994]. In 1984, OSHA established a program to consult with employers about establishing effective occupational safety and health programs [29 CFR 1908]. The program is active in all 50 States and emphasizes businesses with the most hazardous operations. Primary attention is given to smaller businesses (i.e., those with fewer than 250 workers). The OSHA Targeted Training Program (recently renamed the Susan Harwood Training Grant Program) provides grants for safety and health training programs in small businesses and for specialized training in ergonomics, scaffolding, and workplace violence [OSHA 1997]. To reduce the burden of regulatory compliance for small businesses, the Small Business Regulatory Enforcement Fairness Act of 1996 requires Federal agencies to help small businesses comply with government regulations and to develop policies that reduce or eliminate fines for small businesses. In implementing the statutes of the Act, the U.S. Department of Labor reported that 88% of small businesses fined by OSHA between March and December 1997 had fines reduced by a total of $110 million [AIHA 1998].