WASHINGTON, D.C. — Small businesses significantly impact Connecticut’s economy, employing 713,635 workers in 2010 with most of the employment coming from firms with 20–499 employees, according to a new state-by-state report released this week by the US Small Business Administration (SBA) Office of Advocacy.
The Small Business Profile for the States and Territories, an annual analysis of each state’s small businesses, also finds that self-employment in Connecticut declined over the last decade, while minority self-employment saw the largest growth. All in all, Connecticut’s 326,439 small businesses represent 97.1 percent of all employers, and they employ 49.7 percent of the private-sector labor force. Nationwide, there are 27.8 million small businesses representing 99.7 percent of all employers and employing nearly half — 49.1 percent — of the private-sector labor force.
“Like many states across the nation, small businesses are helping to strengthen the economy in Connecticut,” said Dr Winslow Sargeant, chief counsel for Advocacy. “Most of the country’s small businesses continue to be very small, having fewer than 20 employees, but they paint a big picture of a recovering America. Advocacy’s analysis gives us a clear understanding of just how important small businesses are in Connecticut.”
Connecticut’s small business profile contains detailed information about the number and type of businesses in the state, business owner demographics, industrial makeup, business turnover, and income and finance. Most data are also presented in comparison with similar data over time. Each state’s small business profile can be read or downloaded by visiting the Office of Advocacy’s website at www.sba.gov/advocacy/848.
Highlights of the Connecticut small business profile include:
*Connecticut’s economy was strong in 2011, with real gross state product increasing 3.9 percent and private-sector employment increasing 1.5 percent.
*The state’s unemployment rate decreased by 0.5 percent in 2011.
*During the midst of the economic recession, the employment situation from 2007 to 2010 was weak, and small businesses in Connecticut had a net job loss.
*Small businesses in Connecticut employed 713,635 workers in 2010, with most of the employment coming from firms with 20–499 employees.
*Most of the state’s small businesses are very small as 77.9 percent of all businesses have no employees, and most employers have fewer than 20 employees.
*In 2011, the number of opening establishments was lower than closing establishments, resulting in a positive change in net employment.
*Self-employment in Connecticut declined over the last decade.
*Minority self-employment saw the largest growth in Connecticut over the last decade.