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Washington small business profile
Washington Small Business Profile - In Washington, small businesses are vital to the financial well-being of the state’s economy. Their contribution is essential for economic growth since they make up almost all employer firms in the state. As entrepreneurs and innovators, small business owners represented a diverse group in 2004 and continued to keep the state’s economy productive. The Small Business Profile provides information on the performance of small businesses in the state using the most current federal data available. This Small Business Profile was prepared by the U.S. Small Business Administration and provides information on the performance of small businesses in the state using the most current federal data available.
Number of Businesses
There were an estimated 529,863 small businesses in Washington in 2004. Of the 198,635 firms with employees, an estimated 98.1 percent, or 194,951, were small firms. In 2004, the estimated number of employer businesses decreased by 3.9 percent. The number of self-employed persons (including incorporated) increased overall by 5.5 percent, from 350,017 in 2003 to 369,271 in 2004. Non-employer businesses numbered 334,912 in 2002, an increase of 2.5 percent since 2001, based on the most recent data available.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; U.S. Dept. of Commerce, Census Bureau; U.S. Dept of Labor, Bureau of Labor Statistics.)
Women-Owned Businesses
In 2002 women-owned firms totaled 137,475, an increase of 12 percent from 1997, and generated $17.5 billion in revenues. Firms owned jointly by women and men numbered 75,292 with revenues of $21.0 billion. Women represented 35.7 percent of the self-employed persons in the state.
(Sources: U.S. Dept. of Labor, Bureau of Labor Statistics; U.S. Dept. of Commerce, Census Bureau.)
Minority-Owned Businesses
In 2002, Hispanic-owned firms numbered 10,269, an increase of 3 percent from 1997. Black-owned firms numbered 6,985, an increase of 26 percent; Asian-owned firms numbered 26,872, an increase of 17 percent; American Indian and Alaska Native-owned firms numbered 5,734, an increase of 22 percent; and there were 739 Native Hawaiian and other Pacific Islander-owned businesses.
(Source: U.S. Dept. of Commerce, Census Bureau.)
Business Turnover
There were an estimated 31,955 new employer businesses in 2004, 11.6 percent less than the previous year. Business terminations numbered 47,141 in 2004, an increase of 33.4 percent. Business bankruptcies decreased by 9.8 percent and totaled 665 in 2004.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; Administrative Office of the U.S. Courts; U.S. Dept. of Commerce, Census Bureau.)
Employment
Small firms with fewer than 500 employees numbered 135,692 in 2002 and employed 1,196,397 individuals, or 54.7 percent of the state’s non-farm private sector. Net job gains among firms with fewer than 20 employees totaled 6,206, while large firms with 500 or more employees lost 57,862 jobs between 2001 and 2002.
(Source: U.S. Dept. of Commerce, Census Bureau, Statistics of U.S. Businesses.)
Small Business Income
Non-farm proprietors’ income, a partial measure of small business income, increased by 6.1 percent, from $16.5 billion in 2002 to $17.5 billion in 2003.
(Source: U.S. Dept. of Commerce.)
Finance
Commercial bank lenders are an important source of small business loans, and small firms usually rely on them for financing. Over the last 10 years the number of banks in Washington has declined. The Office of Advocacy has identified banks in each state that make the most loans to small businesses. This information is available in its banking studies at http://www.sba.gov/advo/research/lending.html.
