The United States added nearly 1 million nonemployer businesses between 2006 and 2007, bringing the total to 21.7 million, the U.S. Census Bureau announced today. This 4.5 percent growth rate is detailed in Nonemployer Statistics: 2007, an annual data series on businesses without paid employees.

     “These statistics allow users to track annual trends in nonemployer businesses down to the local level,” said C. Harvey Monk Jr., Associate Director for Economic Programs at the U.S. Census Bureau. “Businesses can use this data to help analyze market potential, to measure the effectiveness of sales and advertising programs and to develop their budgets.”

     Total receipts for nonemployer businesses were $992 billion in 2007, up from $970 billion in 2006, a 2.2 percent increase. Of the total nonemployer businesses, 19.1 million were sole proprietorships, 1.4 million were corporations and 1.2 million were partnerships.

     Most nonemployers are self-employed individuals operating very small unincorporated businesses, which may or may not be the owner’s principal source of income. Classified in nearly 300 industries, data is available for the nation, states, counties and metropolitan areas.

By Geography

     California (2.8 million), Texas (1.8 million) and Florida (1.6 million) had the most nonemployer businesses in the country, making up nearly 29 percent of all nonemployer businesses. Receipts of nonemployer firms in these same states totaled nearly $308 billion — 31 percent of all receipts from nonemployer businesses nationwide.

     Among all states, Georgia led the nation in the growth rate of nonemployer businesses with a 6.9 percent increase between 2006 and 2007, followed by Alabama at 6.8 percent and North Carolina with a 6.7 percent increase.

     Among larger counties, Bronx, N.Y., and Philadelphia led the growth rate of nonemployer business establishments, each showing a 10.2 percent increase in 2007. Mecklenburg, N.C., had the third largest growth rate in the number of such establishments at 9.3 percent, followed by Miami-Dade, Fla., at 8.7 percent and Kings, N.Y., at 8.6 percent.

By Sector and Industry

     Three economic sectors made up more than 40 percent of the total receipts — real estate services ($177 billion); professional, technical and scientific services ($130 billion); and specialty trade contractors ($97 billion). These three sectors were comprised of 7.2 million businesses and represented more than 33 percent of all nonemployer businesses.

     The plumbing, heating and air-conditioning contractors industry reported a 9 percent increase in nonemployer businesses in 2007, representing 11,000 additional businesses nationwide. The 137,990 businesses that made up this industry reported more than $8.1 billion in receipts, an average of nearly $59,000 per location. Among counties, Los Angeles, Calif. (4,596), Harris, Texas (2,898) and Miami-Dade, Fla. (2,480), had the most nonemployer plumbing, heating and air-conditioning contractor locations.

     The florists industry reported an increase of nearly 1,400 nonemployer businesses in 2007, to 25,609, with national receipts totaling $992 million. California led all other states in revenue in the industry with nearly $175 million in receipts. Among larger counties, Palm Beach, Fla. ($65,993), Honolulu ($63,735) and Multnomah, Ore. ($63,100), generated the highest average receipts.

     The child day care services industry reported 691,289 nonemployer businesses in 2007, with receipts totaling $8.9 billion. Los Angeles County, Calif. (33,716), Cook County, Ill. (23,760) and Bronx County, N.Y. (18,449), had the most nonemployer child day care businesses, accounting for 11 percent of the businesses and 10 percent of the receipts in this industry. Among larger counties, Washington, Minn. ($24,371), King, Wash. ($21,798) and Anne Arundel, Md. ($20,185), generated the highest receipts per establishment.

     Nonemployer Statistics excludes businesses with paid employees; these data are covered in the County Business Patterns report.

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Nonemployer statistics originate from tax return information of the Internal Revenue Service. 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. Values provided by each firm are slightly modified to protect the respondent's confidentiality. Further information about methodology and data limitations is available at <http://www.census.gov/econ/nonemployer/methodology.htm>.