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Useful Stats: State Business Churning Figures, 2002-2003
Conditions favorable for entrepreneurship in 2003 laid the foundation for job gains in 2004, according to a report issued last week U.S. Small Business Administration's (SBA) Office of Advocacy. Small Business Economic Indicators for 2003 notes that “the outlook for future small business expansion was positive at the end of 2003” due to the progress of some important economic indicators throughout the year.
Among the report's highlights, 2003 saw an estimated 572,900 employer firm births and 554,800 terminations. This resulted in a net increase in employer firms of 18,100, or 0.3 percent, while the number of non-incorporated self-employed rose by 369,000, or 3.7 percent. The report also confirmed that by the year’s end interest rates were low and banks had relaxed lending standards, leading to an uptick in job creation and employment.
SSTI has prepared a table presenting "business churning" statistics and rankings for all 50 states and the District of Columbia over 2002-2003, using data from the SBA indicator report. Business churning is a measure of new firm births and existing firm deaths as a share of total firms. This churning increases as the number of new start-ups and existing business failures per year increases. Business churning is seen as a major driver of innovation and growth.
The SSTI table is available at: http://www.ssti.org/Digest/Tables/081604t.htm [For state business churning statistics over the four-year period of 1998-2001, see the Feb. 21, 2003 issue of the Digest.]
Other state level data available in the report include the number of self-employed, business bankruptcies, and financial information. Industrial level data is provided for nonfarm private employment and the fastest and largest growing industries in 2002-2003. Other macro-level indicators for the U.S. economy also are presented.
For more information or to obtain a full copy of Small Business Economic Indicators for 2003, visit the Office of Advocacy at http://www.sba.gov/advo.