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Measuring the Small Business Economy

Author

Listed:
  • Tina Highfill
  • Richard Cao
  • Richard Schwinn
  • Richard Prisinzano
  • Danny Leung

    (Bureau of Economic Analysis)

Abstract

To better track the overall growth and relative contributions of small business in the U.S. economy, the U.S. Bureau of Economic Analysis is developing new economic statistics by business size. The paper begins with a description of existing economic statistics for small businesses, including those from the U.S. Small Business Administration, U.S. Department of the Treasury, and Statistics Canada. We then present experimental estimates of 2012–2016 employment, wages, and wages per employee by enterprise size and industry, based on publicly available source data. We find wage and employment growth over the period was slowest for very small enterprises (those with less than 20 employees) and fastest for large enterprises (those with 500 or more employees), although this relationship differs across industries. Additionally, enterprises with 0–99 employees saw wages increase at a slower rate than medium and large enterprises (those employing 100 or more employees), lagging by 1.5 percent. A discussion of the measurement challenges related to developing a full suite of economic statistics for small businesses concludes the paper.

Suggested Citation

  • Tina Highfill & Richard Cao & Richard Schwinn & Richard Prisinzano & Danny Leung, 2020. "Measuring the Small Business Economy," BEA Working Papers 0173, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0173
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    File URL: https://www.bea.gov/system/files/papers/BEA-WP2020-4_0.pdf
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    References listed on IDEAS

    as
    1. Anmol Bhandari & Serdar Birinci & Ellen R. McGrattan & Kurt See, 2020. "What Do Survey Data Tell Us about US Businesses?," American Economic Review: Insights, American Economic Association, vol. 2(4), pages 443-458, December.
    2. Leung, Danny & Rispoli, Luke, 2014. "The Distribution of Gross Domestic Product and Hours Worked in Canada and the United States Across Firm Size Classes," Economic Analysis (EA) Research Paper Series 2014088e, Statistics Canada, Analytical Studies Branch.
    3. Leung, Danny Rispoli, Luke, 2011. "The Contribution of Small and Medium-sized Businesses to Gross Domestic Product: A Canada-United States Comparison," Economic Analysis (EA) Research Paper Series 2011070e, Statistics Canada, Analytical Studies Branch.
    4. Chan, Raymond & Leung, Danny & Rispoli, Luke, 2012. "Small, Medium-sized, and Large Businesses in the Canadian Economy: Measuring Their Contribution to Gross Domestic Product from 2001 to 2008," Economic Analysis (EA) Research Paper Series 2012082e, Statistics Canada, Analytical Studies Branch.
    5. Anmol Bhandari & Serdar Birinci & Ellen R. McGrattan, 2019. "Data Appendix: What Do Survey Data Tell Us about U.S. Businesses?," Staff Report 578, Federal Reserve Bank of Minneapolis.
    6. Gibson, Bob Leung, Danny Rispoli, Luke, 2011. "Small, Medium-sized and Large Businesses in the Canadian Economy: Measuring Their Contribution to Gross Domestic Product in 2005," Economic Analysis (EA) Research Paper Series 2011069e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tina Highfill & Richard Cao & Annabel Jouard & Bureau of Economic Analysis & Richard Prisinzano & University of Pennsylvania), 2021. "A New Understanding of Small Businesses," Survey of Current Business, Bureau of Economic Analysis, May.
    2. Tina Highfill & Richard Cao & Annabel Jouard & Bureau of Economic Analysis & Richard Prisinzano & University of Pennsylvania), 2021. "A New Understanding of Small Businesses," Survey of Current Business, Bureau of Economic Analysis, vol. 101(5), pages 1-8, May.

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • A10 - General Economics and Teaching - - General Economics - - - General

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