01/14/2008
Small business continued to lead the U.S. economy's growth in 2006, according to a report recently released by the Small Business Administration's Office of Advocacy.
The Small Business Economy: A Report to the President, the Office of Advocacy's annual report on the state of small business in America, analyzed economic environment for small business in 2006. The report focused on social entrepreneurship, pre-venture planning, and small businesses owned by minorities and veterans.
"[The] report shows that overall, small firms continue to drive a resilient U.S. economy," said Advocacy Chief Economist Chad Moutray. "In releasing this annual small business research report, we are pleased also to showcase new research by economists in the field of small business and entrepreneurship."
According to the report, "Output rose, business income and profits were up, and unemployment was down." The estimated number of businesses (6 million) and self-employed (10.6 million unincorporated and 5.5 million incorporated) workers rose, and employment increased 2.3 percent.
Small firms represent 99.7 percent of all employers, and small firms with fewer than 500 employees represent 99.9 percent of the 26.8 million businesses in the country, both large and small.
As the economy grew, small business credit continued to expand, according to the SBA's report, with total business borrowing increasing from $562 billion in 2005 to $753 billion in 2006.
The SBA also reported that of $340 billion in federal government contracts eligible for competition, small business received 22.8 percent. And, the report revealed, small businesses also received approximately $65 billion in subcontracts with federal government prime contractors. NFIB has long fought for government contracts to be open to small business for bidding, as it allows the government to find the same or better service at a lower cost while helping support the nation's No. 1 job creator.
Additionally, the SBA reports that due to efforts made to encourage compliance with the Regulatory Flexibility Act, which requires federal agencies to determine the impact of a proposed rule on small business, small business saved $7.25 billion in first-year and $117 million in annual regulatory costs. NFIB continues to work for legislation improving the Regulatory Flexibility Act, and recently submitted its top 10 recommendations for reform to Congress at a U.S. House Small Business Committee hearing.
As small business continues to serve as the engine of the economy, NFIB will keep working to protect your right to own, operate and grow your business. Visit NFIB.com/Issues to find out how NFIB is fighting for small business on Capitol Hill and in your state.
