Survey of Business Owners

Survey of Business Owners
Name	Survey of Business Owners
Agency	United States Census Bureau
Country	United States
Frequency	Quinquennial
Related	Economic Census, American Community Survey

Survey of Business Owners. It is a major quinquennial statistical program conducted by the United States Census Bureau as part of the broader Economic Census. The survey provides comprehensive data on the characteristics of business owners, including demographics such as gender, ethnicity, race, and veteran status, across the nation's economic landscape. These detailed statistics are essential for understanding entrepreneurship, measuring economic diversity, and informing public policy and business research.

Overview

The survey is a cornerstone dataset for analyzing business ownership within the United States, capturing information from millions of businesses filing with the Internal Revenue Service. It is integrated with the Economic Census, which profiles the nation's economy every five years, and its data are used in conjunction with other federal surveys like the American Community Survey. Key outputs include reports on minority-owned businesses, women-owned businesses, and veteran-owned businesses, providing a detailed portrait of entrepreneurship across different demographic groups. The findings are published on the official website of the United States Census Bureau and are critical for agencies such as the Small Business Administration.

Methodology

The methodology employs a sophisticated sample design drawn from the universe of employer businesses identified through administrative records from the Internal Revenue Service and the Social Security Administration. The sample is stratified by factors including industry, based on the North American Industry Classification System, geography, and business receipts to ensure representativeness. Data collection is primarily conducted via mail-out/mail-back questionnaires, with extensive follow-up operations to maximize response rates. The United States Census Bureau utilizes complex weighting and estimation procedures to produce national and sub-national estimates, ensuring the data accurately reflect the total business owner population.

Data Collection

Data collection occurs every five years, aligning with the years ending in '2' and '7' as part of the Economic Census cycle. Questionnaires are dispatched to a statistically selected sample of business owners, requesting detailed information on the owner's gender, Hispanic origin, race, and veteran status. The United States Census Bureau employs multiple modes, including paper forms and online reporting, to facilitate response. Strict confidentiality rules under Title 13 of the United States Code are enforced, and data undergo rigorous editing and imputation processes to address non-response and ensure data quality before publication.

Key Findings and Statistics

Key findings historically reveal significant trends in American entrepreneurship. For instance, reports have detailed the rapid growth in the number of Asian American-owned and Hispanic-owned businesses compared to other groups. Statistics regularly show that while women-owned firms are increasing in number, their average receipts often lag behind those of male-owned firms. The data also highlight the economic contributions of veteran-owned businesses and the geographic concentration of minority-owned enterprises in states like California, Texas, and Florida. These statistics are pivotal for reports issued by the Minority Business Development Agency.

Uses and Applications

The data are extensively used by federal agencies, including the Small Business Administration and the Minority Business Development Agency, to allocate resources and assess the effectiveness of business development programs. State and local governments, such as those in New York City and the State of Illinois, utilize the statistics for economic planning and to support local entrepreneurship initiatives. Researchers at institutions like the National Bureau of Economic Research and the Kauffman Foundation rely on the data for academic studies on business formation and survival. Private sector firms and consultants use the information for market analysis and strategic planning.

History and Evolution

The survey originated from earlier efforts to collect data on minority-owned businesses, with significant development following the enactment of the Equal Credit Opportunity Act and the creation of the Minority Business Development Agency in the late 20th century. It was formally established as the Survey of Minority-Owned Business Enterprises before being expanded and renamed. Major milestones include its integration with the Economic Census and the addition of questions on veteran status. Technological advancements at the United States Census Bureau, such as improved online reporting, have continuously enhanced its scope and efficiency over successive cycles.

Category:United States Census Bureau Category:Economic surveys in the United States