Research Issues

Part of Advocacy’s mission is to conduct, sponsor, and promote economic research that provides an environment for small business growth. This page lists Advocacy research published since 2008. To find research on a specific topic, choose a filter category or insert your own keyword. To view a listing of studies published between 2008 and 2011 and a matrix of the issue areas they apply to, click here (includes links to the complete reports and summaries). Or simply scroll through the chronology of research on this page.

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    This report is an update to Advocacy’s annual publication that provides information on the lending activities of depository institutions in the United States. The U.S. economy continued to recover and improved moderately during the second half of 2011 as some economic indicators turned upward. Financial market conditions were to some extent supportive of economic growth, but the credit supply for smaller firms remained tighter than for larger firms relative to historic norms.

  • Part of the Office of Advocacy’s mission is to conduct, sponsor, and promote economic research that provides an environment for small business growth. This page displays a matrix of Advocacy’s research products from 2008 to 2011 and the issue areas they address, broadly framed as small business contributions, challenges, and environment.

  • This study by Eagle Eye Publishers documents the role and impact of federal procurement programs on small businesses. It further provides a backdrop to evaluate the impact of the American Recovery and Reinvestment Act (also known as the ARRA, the Recovery Act, or the Stimulus) on small business contracting.

  • Periodically, we present these one-pagers to focus on one specific small business issue.  These Facts enable small business champions and others to better understand the plight of small businesses.

  • The importance of immigrant entrepreneurs to the U.S. economy has been very well documented in Advocacy studies and elsewhere in the economic literature. They contribute greatly to the economy, have high business formation rates, and create successful businesses that hire employees and export goods and services. Lacking, however, was a thorough look at the financial picture that would complement what we know of them. This study, using data from the 2007 U.S. Survey of Business Owners, attempts to complete the picture on immigrant entrepreneurship and addresses questions such as the following: What hurdles do they face accessing capital? How do they use capital?

  • Small firms view a vigorous anti-cartel policy as a desirable feature of a state’s law enforcement profile.

  • Entrepreneurship, economic growth, and unemployment are interrelated: exactly how is the subject of
    this research.

  • Businesses owned by veterans and by service-disabled veterans have been the subject of a special research effort by the U. S. Small Business Administration’s Office of Advocacy since the enactment of the Veterans Entrepreneurship and Small Business Development Act of 1999, Public Law 106-50. This report continues Advocacy’s ongoing veteran entrepreneurship research program and features data on veteran-owned businesses and their owners. The report is based on the 2007 Survey of Business Owners data released in 2011.

  • For the past 30 years, the Office of Advocacy has produced a series of annual reports on American small businesses titled, from 1982 to 2000, The State of Small Business and from 2001 to the present, The Small Business Economy. This is a rich collection of information about small business contributions to the economy and trends over time. This year, for the first time, the Office of Advocacy offers the key data on small businesses in tabular form online in place of the paperback report. This new format will increase the accessibility of the data.

  • Advocacy’s Small Business Data Resources is a listing of online databases by federal agency or private sector source and topic. The listed databases are hotlinked to their websites and keyed to the small-business-related topics on which they provide information.

  • The study examines the impact of small business activity by industry on overall state economic growth.  A few studies have focused on the impact of small business in general at the state level, but their results make it clear that the differing industry mixes among states have skewed the results.

  • U.S. gross domestic product (GDP) is the market value of the goods and services produced by labor and property located in the United States. This research takes each component of private nonfarm GDP and estimates the proportions produced by small and large businesses. This study is another installment in the series of studies sponsored by the Office of Advocacy on small businesses’ contributions to GDP, the most recent of which was published in 2007. The report finds that small businesses continue to be vital contributors to the U.S. economy, producing 46 percent of private nonfarm GDP in 2008 (the most recent year of data).

  • This publication profiles the 2011 Advocacy research reports, publications, conferences, data, and research functions.

  • Small innovative firms are 16 times more productive than large innovative firms in terms of patents per employee, and the patents of small firms were cited 79 percent more by recent patents than is typical for other patents of the same age and patent classification. Patents for “green” products form a higher percentage of the portfolios of small firms with at least one green patent than of large firm portfolios, and green patents from small firms are cited 2.5 times as frequently as green patents from large firms.
    Full Report (PDF)
    Research Summary (PDF)

  • The Quarterly Lending Bulletin  (pdf) for the second quarter, 2011, presents a brief analysis of the current small business lending situation and shows a drop in loans outstanding to small businesses.

  • The primary goal of this report is to place gender in a broader perspective. Business ownership no longer can be analyzed simply on the basis of the owner’s gender; businesses owned by women and men more and more share the same general development patterns. Moreover, the strong growth of publicly held firms, which cannot be identified by the demographic characteristics of their many owners, has led to the need to focus on both privately owned and publicly held firms.

    Full Report (PDF)

    Research Summary (PDF)

  • State and national data for banks and credit unions for 1986-2010 show credit unions may have provided extra business lending in response to reductions in bank lending.

    Full Report in PDF format

    Research Summary in PDF format

  • State and national data for banks and credit unions for 1986-2010 show credit unions may have provided extra business lending in response to reductions in bank lending.

  • This study investigates health care coverage provided by small firms and the effects of state and federal tax incentives on health insurance availability.

  • Federal regulations of all types weigh heavily on American small businesses, but the burden of complying with federal income tax requirements is of particular concern. A 2009 Congressional Research Service report notes that the burden of complying with the federal tax system represents approximately 80 percent of the overall paperwork burden imposed by the federal government.

  • The Small Business Quarterly Bulletin is a brochure-style publication that contains commentary and analysis on the current employment and financing trends of small businesses.

  • A previous Advocacy-funded study from Corporate Research Board, High-Impact Firms: Gazelles Revisited, found that fast-growing or high-impact companies were a main contributor to new jobs. In light of the current need for a growing labor market, a natural question is how the deteriorating economy of 2008 affected high-impact companies and their jobs. This study picks up where the previous one left off, and it addresses such additional questions as the gender of the owners and the financial condition of high-impact companies.

  • Recognizing the vital role that women-owned businesses play in the American economy, Advocacy conducts research on businesses owned by women and other demographic groups using the most comprehensive government datasets as they become available.
  • We know from previous Advocacy-sponsored research and more than three decades of data from the Bureau of Labor Statistics, that year in and year out veterans have a consistently higher rate of self-employment than non-veterans. Why is this? The new study by the SAG Corporation, Factors Affecting Entrepreneurship among Veterans, investigates this question and quantifies a variety of factors observed in its analyses.
  • The U. S. bankruptcy system is designed to recover funds for creditors while giving bankrupt small businesses an opportunity for a “fresh start.” While a fresh start is a goal of the system, little analysis has been done to evaluate the ability of small firms to reset and thrive after bankruptcy. This paper attempts to fill that gap. The research finds that 2.6 percent of firms filed for bankruptcy within the previous seven years, that they are comparable to other firms in terms of cash flow and firm size, and that they have a 24 percent higher likelihood of being denied a loan and are charged interest rates that are 1 percent higher than those charged other firms.
  • This study examines the estimates for IRS enforcement and legislative activities with respect to small businesses, the weakness of the estimates relating to large corporations and taxpayers involved in international transactions, and possible alternative approaches to reduce the burden on small businesses.
  • The study,Lending by Depository Lenders to Small Businesses, 2003 to 2010, looks at small business lending in the context of an economy that has endured a deep recession and appears poised for recovery. It relies on data based on reports provided by depository institutions to their respective regulating agencies—Call Reports for June of each year from 2003 to 2010.
  • The study,Lending by Depository Lenders to Small Businesses, 2003 to 2010, looks at small business lending in the context of an economy that has endured a deep recession and appears poised for recovery. It relies on data based on reports provided by depository institutions to their respective regulating agencies—Call Reports for June of each year from 2003 to 2010.

  • Contents Introduction Research Summary Small Business Lending Obtaining Reports Introduction The Small Business Lending in the U.S published by the Office of Advocacy, U.S Small Business Administration ...
  • The Office of Advocacy’s Small Business Profiles for the States and Territories supply data on small businesses in each of the 50 states and the District of Columbia. The publication also provides national-level data and limited data on the ...
  • Contents Introduction Research Summary Small Business Lending Obtaining Reports This fourteenth annual banking study continues the inclusion of depository institutions such as Federal and state savings ...
  • November 2010 No. 369 Race/Ethnicity and Establishment Dynamics, 2002-2006 Ying Lowrey, Office of Advocacy, 2010 [56] pages This paper is the second in a series to report on matching data from the 2002 Survey of Business Owners (SBO) ...
  • The purpose of this study is to explore the ways in which small businesses access and use highspeed Internet services, and to evaluate the importance of broadband speed and price for small businesses. The U.S. Small Business Administration’s ...
  • A Working Paper by Major L. Clark, III and Radwan N. Saade Office of Advocacy U.S. Small Business Administration Release Date: September 2010 The statements, findings, conclusions, and recommendations found in this study are those of the authors ...
  • In 2010, the Office of Advocacy released a study by Nicole V. Crain and W. Mark Crain titled “The Impact of Regulatory Costs on Small Firms.”  This was the fourth in a series of papers dating back to 1995.  The goal of the ...
  • August 2010 No. 367 A Longitudinal Analysis of Early Self-employment in the NLSYs Yasuyo Abe and Hannah Betesh, Berkeley Policy Associates and A. Rupa Datta, NORC at University of Chicago 2010 [69 pages]. Under Contract ...
  • August 2010 No. 368 Gender and Establishment Dynamics, 2002-2006 Ying Lowrey, Office of Advocacy, 2010 [48] pages This report examines the gender characteristics and business dynamics of establishments that were in operation as of 2002 for ...
  • Preliminary information on business owner demographics assembled by the U.S. Census Bureau is available now on the census website 2007 Survey of Business Owners (SBO). The SBO provides data on the number of firms, sales and receipts, employment, ...
  • July 2010 No. 366 Small Business and Self-Employment as Income Mobility Mechanisms Bradley R. Schiller, Capitol Research, Inc. 2010 [24 pages]. Under contract no. SBAHQ-08-M-0455 Small firm contributions to the labor market entry, skill ...
  • By Rebel Cole, Chicago, IL. The availability of credit is one of the most fundamental issues facing a small business. Its importance can be seen by the significant level of academic research attempting to understand and identify the gap in ...
  • By George W. Haynes. Bozeman, Montana An extensive body of research exists on the financial structure of small businesses, along with numerous studies that have focused on the profit maximization and risk tolerance of small business owners. Little ...
  • Economic developers in regions across the United States often want to support entrepreneurial activity, but find it difficult both to develop suitable prescriptions and to put them into practice. Analysis of case studies has identified a promising ...
  • Regional variations in entrepreneurship have important implications for regional development, since entrepreneurs play a crucial role in bringing new ideas to the market which can benefit all firms in a community. It highlights regional differences in entrepreneurship across U.S. labor markets as well as within different subgroups. Full Report

  • This study looks at workers’ access to and partici- pation in retirement plans offered by their employers using data from the 2004 Survey of Income and Program Participation (SIPP) wave, which was conducted in 2006. In particular, it examines these issues by firm size. Note that this study defines a small business as one with fewer than 100 employees.

  • Interest in understanding small businesses’ role in the labor market has been heightened in the current economic climate because of small businesses’ prodigious job generating ability. This report is a primer for understanding some basic ...
  • Kathryn Kobe, Economic Consulting Services, LLC; Washington, D.C. 20036 2009. 65 pages. Under contract no. SBAHQ-06-M-0477. The number of companies offering the traditional defined benefit (DB) pension plan has been steadily declining, and ...
  • Saving for Retirement: A Look at Small Business Owners An Office of Advocacy Working Paper by Jules H. Lichtenstein [56] pages. This Small Business Research Summary summarizes one of a series of working papers issued by the U.S. Small Business ...
  • George W. Haynes, Ph.D. Montana State University Bozeman, MT 59717 Under contract no. SBAHQ-08-M-0454 Release Date: January 2010 Introduction This study updates previous reports prepared for the Office of Advocacy on the income and ...
  • The Office of Advocacy’s Quarterly Lending Bulletin provides a brief summary on the activities of commercial banks and other depository institutions based on the Call Reports.

  • by Chad Moutray, U.S. Small Business Administration, Office of Advocacy, 2009. [39] pages. Purpose States looking to grow their economies must ensure that sufficient human capital exists to raise productivity, output, and incomes throughout the ...
  • A working paper by Zoltan Acs, Brian Headd, and Hezekiah Agwara, 2009 [24] pages. Under contract SBAHQ-08-M-0195 Purpose Nonemployer firms—businesses without employees—represent a large percentage of businesses; however, little is ...
  • The attached file below is an Office of Advocacy Working Paper by Ying Lowery. Preliminary Survey of Business Owner tracking data on the dynamics of employer establishments—rates of establishment death, expansion, and contraction and net job ...
  • The Office of Advocacy’s Small Business Profiles for the States and Territories supply data on small businesses in each of the 50 states and the District of Columbia. The publication also provides national-level data and limited data on the ...
  • This paper describes preliminary results from a pilot survey of college and MBA students and alumni from five universities. This survey was designed and conducted by a team of researchers from the Berkley Center for Entrepreneurial Studies at the ...
  • A Working Paper by Ying Lowrey, Office of Advocacy, 2009. [59] pages. Executive Summary The purpose of this report is to contribute to a better understanding of American business startups and their dynamics. The American economy relies upon ...
  • A Compendium of Research by the Small Business Administration's Office of Advocacy July 2009 Table of Contents Foreword Lending to Small Businesses by Financial Institutions in the United States by Charles Ou and Victoria ...
  • Analysis of the survey data indicate that immigrants play an important role in founding high-impact, high-tech companies in the United States. About 16 percent of the companies in the nationally representative sample have at least one immigrant among their founders.

  • by Lucia Naldi and Mattias Nordqvist, SE 551 11 Jönköping, Sweden, [37] pages. Under contract no.SBAHQ-07-M-0364 Abstract In today’s global marketplace there are competitive pressures for all firms to internationalize. Family ...
  • Research Summary: Effects of International Competition on Small Wholesale and Retail Trade Firms by Robert M. Feinberg, Washington, DC 20016 Purpose A previous study for the Office of Advocacy by Robert Feinberg found international ...
  • Small Business and Micro Business Lending in the United States for Data Years 2007-2008 by Victoria Williams and Charles Ou, U.S. Small Business Administration, Office of Advocacy, Office of Economic Research, 2009, [116] ...
  • Contents Introduction Small Business Lending Obtaining Reports This fourteenth annual banking study continues the inclusion of depository institutions such as Federal and state savings banks and ...
  • Federal, state and local taxes represent a major cost of doing business in the United States, and this is particularly true for small businesses. The array of federal taxes that small businesses face includes income taxes (individual and ...
  • The Office of Advocacy has funded several studies that examine the patent activity of small businesses (e.g., Breitzman and Hicks, 2008; CHI Research, 2002, 2004; and Eckhardt and Shane, 2006 to list a few).  All show that small businesses outperform their larger counterparts in patent activity (issuance).  Moreover, Breitzman and Hicks (2008) argue that small firms’ patents outperform large firms’ patents on a number of metrics including growth, citation, patent originality, and patent generality. 

    This study is another installment in this discussion. It widens the scope of the existing debate by focusing on the effects of drivers of innovation (employee headcount, sales, and R&D expenditures) on small business value.

  • This contract research report, Are Planners Doers? Pre-Venture Planning and the Start-Up Behaviors of Entrepreneurs in the PSED, explores the relationship of business planning to the general activity levels of nascent entrepreneurs.

     

  • Self-Employed Women and Time Use Tami Gurley-Calvez, West Virginia University, Morgantown, WV 26506 Katherine Harper, University of Tennessee, Knoxville, TN 37996 Amelia Biehl, University of Michigan-Flint, Flint, MI 48502 2008. [50] pages. ...
  • Synopsis Taxes are perennially listed as a significant concern of America’s small business community. 1 Entrepreneurs face a complex and ever-changing web of federal, state, and local (and sometimes international) tax rules and burdens. ...
  • Each year the Office of Advocacy examines issues relevant to small businesses in the U.S. economy. This report summarizes the publications generated by independent contractors, as well as by staff economists of the Office of Economic Research in 2008.

  • A Working Paper by Pankaj C. Patel and Rodney R. D’Souza University of Louisville, Louisville, KY Note The 2009 Office of Advocacy Best Doctoral Paper award was presented to Pankaj Patel and Rodney D’Souza, doctoral students at the ...
  • This paper outlines the most important issues and opportunities facing small business owners and entrepreneurs in this election year. While it does not delve into policy solutions, the next administration will almost certainly need to address many of them, regardless of who wins the presidency.

  • The choice of business definition at the outset of research can drive results.  Pooling different kinds of businesses allows nonemployer businesses (which are numerous and small) to overwhelm employer businesses (whose numbers are far fewer, but whose business activity is many times more significant).  A scan of special tabulations from the U.S. Census Bureau’s 2002 Survey of Business Owners shows that nonemployer and employer businesses differ qualitatively, as do employer firms and businesses of differing sizes.    We investigate how nonemployers and employers differ in number, receipts, industry, business turnover, survival, and ownership characteristics.  Cross-tabulations are presented for such business characteristics as number of employees, receipt size, business age, veteran ownership, home-based, franchise status, family-owned status, legal form of organization, geography, industry, and financing.

  • Contents Introduction Small Business Lending Obtaining Reports This fourteenth annual banking study continues the inclusion of depository institutions such as Federal and state savings banks and ...
  • Purpose Public Law 108-447 directed the Office of Advocacy to conduct a study measuring the effectiveness of the definitions under Section 3(p)(4) of the Small Business Act (15 U.S.C. 632(p)(4) for the purposes of economic impact on small ...
  • byAndy Bollman, E. H. Pechan & Associates, Durham, NC 27707 2007. [50 pages.] Under contract SBAHQ-03C0020 Background The U.S. Department of Justice (DOJ) is considering amendments to the requirements for businesses to remove physical ...
  • To view the full report on Data on Establishments by Firm Size, click the PDF attachment below. STATISTICS OF U.S. BUSINESSES – MICRODATA AND TABLES SBA/CENSUS Data on Establishments by Firm Size Catherine Armington, ...
  • The study compares the number of new small firm hires and their comparative wages with the number and comparative wages of new large firm hires using the Current Population Surveys for May 1983, 1998, and April 1993.

  • The National Survey of Small Business Finances (NSSBF) was used to empirically test the interest rate model for this study, and direct evidence of the importance of relationships was solicited from firms.

  • The report attempts to identify the most important provisions in states' unemployment compensation and workers' compensation laws that can significantly affect costs to employers.

  • This research aims to use the empirical model developed in The Differential Impact of State-Local Tax Incentives in Small Versus Large Firms to examine the comparative impact of a federal consumption-based tax on the distribution of state and local business taxes across firm size.

  • The financing issues faced by small exporters, including availability of trade financing and costs associated with financing and payment settlement is examined in this study.

  • This research identifies differences in foreign patenting by small and large firms by using a data set of matched pairs of small and large business patents.

  • The focus of this report is on small franchise businesses and independent non-franchise businesses created in 1986 and 1987. The study tracks and compares the survival patterns of the two groups through late 1991.

  • This study examines several dimensions of the proposition that small businesses are treated unequally by business tax structures at the state and local levels.

  • This study extends an earlier research effort, "Pension Funds and Small Firm Financing" (See Research Summary no.153 February 1995), which explored public pension fund investment in small business in 1992 by state.The study closely examines those public pension funds identified in the earlier study as having significant small business investments.

  • The aim of this study is to review the literature to ascertain best principles and practices in technology transfer to small manufacturing firms.

  • The purpose of this study is to examine the issues associated with electric power deregulation and restructuring for their potential impact on small business.

  • Based on a rigorous research design and high quality longitudinal data, the study seeks to determine the factors that differentiate surviving franchise systems from those that cease operations.

  • The research includes a series of case studies of Electronic data interchange in the retail sector, in health care networks, among firms in international trade, and in one Department of Defense installation.

  • The study (Part II) provides tabulations and analyses of health insurance and pensions by employment status and firm size, as well as economic and demographic characteristics for both wage-and-salary workers (by firm size) and the self-employed,  while Part I evaluated alternative data sources used to produce estimates of the number of uninsured by employment status and firm size (see Research Summary no. 146).

  • The Current Population Survey (CPS) of January 1991 is used to analyze the current employment shift toward higher­skill jobs, and the extent of small businesses' participation in this shift, and the wage benefits by firm size to employees participating in the shift, are the subjects of investigation in this study.

  • The study measured workers' compensation burden by firm size for the nation and for all states, during the period 1990 to 1992.

  • This report provides an overview of the tax rules and tax considerations affecting corporations.

  • This study identified the types and dollar amounts of investment being made in small businesses through economically targeted investments programs from public pension funds.

  • This study is an extension of earlier research and adds the experiences of entrepreneurship entry and exit of young entrepreneurs by gender, race and educational background.

  • The study focused on the earnings of  women who reported that they were self­employed in their own incorporated or unincorporated businesses and compares their earnings with those of self­employed men for the 1990 census year.

  • This study examines environmental financial responsibility programs to determine what problems they pose for small businesses and whether they can be redesigned.

  • The research focused on four areas: (1) sources small businesses receive information from, (2) why information needed, (3) how useful was the information received, and (4) importantance to the small business owner or manager.

  • The objective of this research was to estimate the effects of reductions in small business employment for the period 1992 to 1999 that result from cuts in defense expenditures for payrolls and procurement.

  • This research determines whether environmental regulations favor large existing manufacturers at the expense of small new manufacturers.

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  • This study: (1) evaluates alternative data sources that can be used to produce estimates of the number of the uninsured by firm size, and (2) focuses on the March Current Population Surveys from 1988 to 1992 to obtain estimates of the insured and uninsured by firm size and economic and demographic characteristics.

  • NTIS order number: PB84-102326 Price codes A04 (Paper) A01 (Microfiche) An Analysis of the Acquisition of Unaffiliated Establishments Kevin Hollenbeck, Richard Hayes, and Irene Witt 1983. 68p. Contract awarded in FY 1982 to ...
  • To view the archived content listed below, please visit our archive site. To request a copy of the archived documents listed below, please contact the Office of Advocacy via email at advocacy@sba.gov. Research on owner demographics, including race, ...
  • To view the archived content listed below, please visit our archive site.To request a copy of the archived documents listed below, please contact the Office of Advocacy via email at advocacy@sba.gov. Preliminary analysis, research and working ...
  • To view the archived content listed below, please visit our archive site. To request a copy of the archived documents listed below, please contact the Office of Advocacy via email at advocacy@sba.gov. August 2008 – Do Business ...
  • To view the archived content listed below, please visit our archive site. To request a copy of the archived documents listed below, please contact the Office of Advocacy via email at advocacy@sba.gov. February 2008 – The Tax Debts of ...
  • To view the archived content listed below, please visit our archive site. To request a copy of the archived documents listed below, please contact the Office of Advocacy via email atadvocacy@sba.gov. November 2008 – An Analysis of ...
  • To view the archived content listed below, please visit our archive site. To request a copy of the archived documents listed below, please contact the Office of Advocacy via email at advocacy@sba.gov. May 2008 – The HUBZone Program ...
  • Data on employers and associated business characteristics are available from the Statistics of U.S. Businesses (SUSB), Business Dynamics Statistics (BDS), and Business Employment Dynamics (BED) programs and data on nonemployers is available from the Nonemployer Statistics (NE) program. The programs are annual and from the U.S. Census Bureau, except the Business Employment Dynamics which is quarterly and from the U.S. Bureau of Labor Statistics. SUSB, NE and BED have detailed industry data while BDS is available at the major industry level. SUSB and NE are available at the county level while BDS and BED are available at the state level. BED is available with only about a 9 month lag while the other datasources are available with a lag of a few years. BED's timeliness does come at a cost in terms of accuracy of firm size compared to the other datasources. BDS is unique in that it has a firm age component. (Note that BDS data has not been updated since its inception, but it is planned to update the data in the future).