The Small Business Economy, 2004 Is Latest
In Annual Series
WASHINGTON, D.C. - The Office of Advocacy of
the U.S. Small Business Administration today unveiled a major
new federal government report, The Small Business Economy, 2004,
which outlines the state of small business and its contributions
to the economy. This latest in an annual series analyzes 2003
data.
“In 2003, the overall economic indicators
improved as the economy gained momentum,” said Office of
Advocacy Chief Economist Dr. Chad Moutray. “Small businesses
led the way. However, continued strong economic growth will require
an environment that fosters more entrepreneurial activity.”
He made the remarks during the report’s release at Robert
Morris College in Chicago.
The comprehensive report examines the role small
business plays in the economy. It focuses on economic trends and
indicators, regulatory issues at the federal, state, and local
levels, innovation and technology transfer, as well as federal
government procurement and small business financing data.
Among the report's highlights:
- In the second half of 2003, consumer and business confidence
returned and the economy shifted into higher gear. Real gross
domestic product increased at an annual rate of 8.2 percent
in the fourth quarter and the number of employer firms increased
by 0.3 percent over the year. The number of unincorporated self-employed
increased by 3.7 percent during the year as well.
- Home-based businesses make up 53 percent of the small business
population and serve as incubators for many growing businesses.
Home-based businesses face a unique regulatory environment that
can restrain their expansion and growth. Notable regulatory
barriers include complex IRS rules on home office deductions
and the complicated test for determining independent contractor
status. Moreover, local zoning laws may also discriminate against
home-based businesses.
- Some of America’s best-known companies are university
spin-offs. Current research suggests that university spin-offs
can have a dramatic effect on the economy of a region. These
effects have been enhanced by government polices such as the
Bayh-Dole Act, which gave universities the rights to inventions
derived from federally funded research.
The Office of Advocacy, the “small business
watchdog” of the government, examines the role and status
of small business in the economy and independently represents
the views of small business to federal agencies, Congress, and
the President. It is the source for small business statistics
presented in user-friendly formats and it funds research into
small business issues.
For more information, visit the Office of Advocacy
website at www.sba.gov/advo.
http://www.sba.gov/advo/press/04-36.html
Created by Congress in 1976, the Office of Advocacy
of the U.S. Small Business Administration (SBA) is an independent
voice for small business within the federal government. Appointed
by the President and confirmed by the U.S. Senate, the Chief Counsel
for Advocacy directs the office. The Chief Counsel advances the
views, concerns, and interests of small business before Congress,
the White House, federal agencies, federal courts, and state policy
makers. Economic research, policy analyses, and small business
outreach help identify issues of concern. Regional Advocates and
an office in Washington, DC, support the Chief Counsel’s
efforts. For more information on the Office of Advocacy, visit
www.sba.gov/advo,
or call (202) 205-6533
Office of Advocacy
U.S. Small Business Administration
NEWSRELEASE
For Release: November 10, 2004
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 04-36 ADVO
Press Kit
