Nation Gains More than 4 Million Nonemployer Businesses Over the Last Decade, Census Bureau Reports

WASHINGTON, May 27, 2015 /PRNewswire-USNewswire/ -- There were 23.0 million businesses without paid employees, or nonemployer businesses, in the United States in 2013, up 4.4 million from 2003 and 269,705, or 1.2 percent, from 2012, according to statistics released by the U.S. Census Bureau.

Most industry sectors with nonemployer businesses experienced growth in the number of nonemployer establishments and receipts since 2012, according to Nonemployer Statistics: 2013, which includes data on businesses in nearly 450 industries located in metropolitan areas, counties, states and nationwide. For example, the construction sector (NAICS 23) saw its first increase in number of nonemployer establishments since 2007. The sector added 21,644 establishments between 2012 and 2013.

"Nonemployer businesses run the gamut from old-fashioned family-run corner stores to home-based bloggers," said William Bostic Jr., the Census Bureau's associate director for economic programs. "In some cases, the business may be the owner's primary source of income, such as with real estate agents and physicians, but in other instances, they may operate the business as a side job, such as with babysitting and tutoring.

Three sectors accounted for the majority of nonemployer businesses added to the economy between 2012 and 2013: other services, except public administration (NAICS 81), which added 60,864; real estate and rental and leasing (NAICS 53), gaining 58,376; and transportation and warehousing (NAICS 48-49), up 43,215.

Other services establishments are primarily engaged in activities such as equipment and machinery repairing; promoting or administering religious activities; grant making; advocacy; and providing personal care services, death care services, photofinishing services, temporary parking services and dating services.

Other services also led all sectors in the total number of nonemployer businesses with 3.6 million, or 15.6 percent of all nonemployer businesses. The personal and laundry services subsector (NAICS 812), which gained 62,292 establishments, propelled the increase in businesses in the sector as a whole. This subsector includes such disparate industries as barber shops and beauty salons, funeral homes and funeral services, coin-operated laundries and drycleaners, and pet care (except veterinary) services.

Real estate, rental and leasing topped the sectors in nonemployer receipts, with $237.2 billion, up $9.7 billion from 2012. The real estate subsector (NAICS 531) gained 59,541 businesses and drove the sector's overall increase. Offices of real estate agents and brokers and residential property managers are two examples of industries found in this subsector.

The gain in the transportation and warehousing sector was led by the taxi and limousine service industry (NAICS 4853), which added 21,494 establishments between 2012 and 2013 to reach 223,814.

Among states, Florida had the largest increase in nonemployer businesses, with 63,259 added between 2012 and 2013, and more added in real estate and rental and leasing than in any other sector (13,615).

Nevada outpaced all states in the percentage increase in nonemployer establishments, with the number climbing 4.2 percent over the period to 192,044 establishments. Accommodation and food services (NAICS 72) led all sectors in Nevada in the rate of increase in number of establishments (up 15.8 percent to 2,656 establishments).

Delaware topped all states in the rate of increase in receipts (up 5.6 percent to $3.3 billion). Real estate, rental and leasing topped all sectors in Delaware in the overall increase in receipts, with a $55.1 million rise to $883.7 million.

Los Angeles County, Calif., added more nonemployer businesses (23,802) than any other county. Among the 50 counties with the largest number of such businesses, Miami-Dade, Fla., experienced the largest rate of increase in the number of businesses (5.7 percent to 407,551). Gwinnett County, Ga., a suburb of Atlanta, had the largest percentage increase in receipts (rising 7.7 percent to $3.6 billion).

Other highlights:

Nation

• Nonemployer businesses pulled in $1.1 trillion in receipts in 2013, up $21.1 billion from the previous year.
• The following sectors were the only ones to experience a decrease in the number of nonemployer establishments between 2012 and 2013:
  • Agriculture, forestry, fishing and hunting (NAICS 11) declined 191 establishments to 239,863 establishments.
  • Mining, quarrying, and oil and gas extraction (NAICS 21) declined 3,321 establishments to 106,610 establishments.
  • Manufacturing (NAICS 31-33) declined 1,633 establishments to 343,025 establishments.
  • Wholesale trade (NAICS 42) declined 2,018 establishments to 406,469 establishments.
  • Information (NAICS 51) declined 1,269 establishments to 326,526 establishments.
  • Finance and insurance (NAICS 52) declined 14,204 establishments to 706,394 establishments.
• The following sectors were the only ones to experience a decline in receipts between 2012 and 2013:
  • Mining, quarrying, and oil and gas extraction decreased 1.5 percent to $7.7 billion.
  • Wholesale trade decreased 1.0 percent to $36.8 billion.
  • Retail trade decreased slightly to $82.5 billion.
  • Finance and insurance decreased 1.0 percent to $51.5 billion.
• Second behind the other services sector in the number of nonemployer establishments was professional, scientific and technical services (NAICS 54), with 3.2 million, or 14.1 percent of total nonemployer establishments in 2013.
• Two subsectors propelled the increase in the number of businesses in the transportation and warehousing sector: transit and ground passenger transportation (NAICS 485 – which gained 23,767 establishments) and truck transportation (NAICS 484 – which added 10,545).

States

• California continued to have the largest total number of nonemployer businesses with 3.0 million in 2013 (13.0 percent of the U.S. total).
• After Florida, the states that added the greatest increase in number of nonemployer businesses between 2012 and 2013 were California (57,931), Texas (25,608) and Georgia (18,956).
• After Nevada, the states (or equivalents) with the highest rate of increase between 2012 and 2013 in the number of nonemployer locations were Florida (up 3.6 percent to 1.8 million in 2013), Maryland (up 3.2 percent to 456,511) and the District of Columbia (up 3.0 percent to 52,262).
• California led in total nonemployer receipts, with $152.9 billion in 2013, a 2.3 percent increase from 2012.
• Following Delaware, the next-highest percent increase in receipts between 2012 and 2013 belonged to Florida, where they rose 4.3 percent to $77.8 billion.
• California gained more transit and ground passenger transportation businesses than any other state between 2012 and 2013, as well as the rate of increase in such establishments (up 6,489 and 25.1 percent, respectively).
• Florida topped all states in the number of real estate nonemployer businesses added between 2012 and 2013, as well as the rate of increase in such establishments (up 13,644 and 6.9 percent, respectively).
• California added more personal and laundry services businesses between 2012 and 2013 than any other state (14,565), with Nevada posting the largest rate of increase (11.9 percent).

Fifty Largest Counties

• Next to Los Angeles County, Miami-Dade, Fla., added the highest number of nonemployer businesses (21,958) between 2012 and 2013, followed by neighboring Broward, Fla. (9,785) and Clark, Nev. (7,030).
• Los Angeles also had higher total nonemployer receipts than any other county, with $48.6 billion in 2013, up 2.9 percent from 2012. 
• Following Gwinnett, Ga., the counties with the highest rates of increase in receipts between 2012 and 2013 were Miami-Dade, Fla. (up 5.6 percent to $16.2 billion in 2013), and Orange, Fla. (up 5.5 percent to $4.3 billion).

Nonemployer statistics originate from Internal Revenue Service tax return information. The data are subject to nonsampling error, such as errors of self-classification by industry on tax forms, as well as errors of response, nonreporting and coverage. Receipts totals are slightly modified to protect confidentiality. All dollar values are expressed in current dollars, i.e., they are not adjusted for price changes. Further information about methodology and data limitations is available at http://www.census.gov/econ/nonemployer/methodology.htm.

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Robert Bernstein                                                          
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SOURCE U.S. Census Bureau

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