Monday, June 4, 2007

Arizona Small Business Profile

In Arizona, small businesses are vital to the financial well-being of the state’s economy. Their contribution is essential for economic growth . As entrepreneurs and innovators, small business owners represented a diverse group in 2004 and continued to keep the state’s economy productive. 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. According to the Small Business Administration, "small business" is defined as a company with less than 100 employees or less than $4 million in revenues.

Number of Businesses
There were an estimated 396,318 small businesses in Arizona in 2004. Of the 110,153 firms with employees, an estimated 97.2 percent, or 107,018, were small firms. In 2004, the estimated number of employer businesses increased by 0.4 percent. The number of self-employed persons (including incorporated) increased overall by 1.6 percent, from 293,006 in 2003 to 297,672 in 2004. Non-employer businesses numbered 289,300 in 2002, an increase of 4.5 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 BusinessesIn 2002 women-owned firms totaled 109,807, an increase of 24 percent from 1997, and generated $16.2 billion in revenues. Firms owned jointly by women and men numbered 59,754 with revenues of $18.3 billion. Women represented 37.4 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 35,102, an increase of 21 percent from 1997. Black-owned firms numbered 6,338, an increase of 77 percent; Asian-owned firms numbered 10,223, an increase of 48 percent; American Indian and Alaska Native-owned firms numbered 6,614, an increase of 20 percent; and there were 348 Native Hawaiian and other Pacific Islander-owned businesses.
(Source: U.S. Dept. of Commerce, Census Bureau.)

Business Turnover
There were an estimated 12,421 new employer businesses in 2004, 6.8 percent less than the previous year. Business terminations numbered 17,553 in 2004, an increase of 13.3 percent. Business bankruptcies decreased by 31.5 percent and totaled 480 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.)

Companies with fewer than 500 employees numbered 93,178 in 2002 and employed 930,225 individuals, or 47.8 percent of the state’s non-farm private sector. Net job gains among firms with fewer than 20 employees totaled 22,473, while large firms with 500 or more employees lost 14,640 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 5.5 percent, from $11.9 billion in 2002 to $12.6 billion in 2003.
(Source: U.S. Dept. of Commerce.)


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