Advocacy Report on Small Business EconomyFebruary 20, 2013
Last week, the U.S. Small Business Administration (SBA) Office of Advocacy, released its annual report for 2012, “The Small Business Economy.” The report shows that America’s small businesses are slowly rebounding from the Great Recession. While still not back to full-speed, Advocacy’s report alludes to modest gains over the past few years.
“Thanks to hardworking small business owners across the country, 2011 represented the second full year of economic expansion since the peak of the recession in 2009, with small businesses representing half of the private-sector output,” stated Dr. Winslow Sargeant, Chief Counsel for Advocacy. “We still have a lot of work to do, but this report tells an inspiring story: output, business income and profits are rising for small businesses, and bankruptcies and unemployment are declining.”
Among the report’s highlights:
- Manufacturing sales were up 11.7 percent between 2010 and 2011. That’s similar to the 11.2 percent increase in 2009-2010;
- Income among the smallest businesses increased by 6.0 percent from 2010 to 2011 while corporate profits also increased by 7.9 percent in the same period;
- Startups or births of employer firms were still below pre-downturn levels – 533,945 in 2010 compared with 668,395 in 2007, but they increased from 2009 to 2010;
- Closings or deaths of employer firms, which reached a new high of 680,716 in 2009, declined to 593,347 in 2010;
- Small firms with fewer than 500 workers outperformed large firms in net job creation in three of the four quarters of 2011; and
- Total business lending continued to increase by June 2012; the rate of decline slowed for small business loans of all size categories.
Please click here to read or download a complete version of the full report.