Self-Employed and the U.S. Economy

Prepared by the National Association for the Self-Employed (NASE) www.NASE.org

The Majority of U.S. Small Businesses are Self-Employed

Prepared by the National Association for the Self-Employed (NASE) www.NASE.org

20,768,555 77.6%

4,730,815 17.7%

646,8162.4%

535,865 2.0%

90,560 0.3%

Self-Employed (Nonemployers)

Firms with < 10 Employees

Firms with 10-19 Employees

Firms with 20-99 Employees

Firms with 100-499 Employees

Source: U.S. Census Statistics of U.S. Businesses and Nonemployer Statistics, 2006

FACT: 77.6 percent of small businesses in the United States are self-employed.

Prepared by the National Association for the Self-Employed (NASE), www.NASE.org

20,768,555 77.52

%

6,004,056

22.41

%

18,071 0.07%

Self-Employed (Nonemployers)

Firms with 2-499 Employees

Firms with 500+ Employees

Big business in USA (.07 percent of all businesses)

Big Business vs. Small Business

FACT: 99.9 percent of all businesses in the United States are small businesses, with three-fourths representing the self-employed.

Source: U.S. Census Statistics of U.S. Businesses and Nonemployer Statistics, 2006

Self-Employed Businesses have Grown Faster than All Other Segments

Prepared by the National Association for the Self-Employed (NASE) www.NASE.org

Source: U.S. Small Business Administration, Office of Advocacy, based on data provided by the U.S. Census Bureau, Statistics of U.S. Business and Nonemployer Statistics, 1997-2006.

Self-E

mployed

<10 Em

ployees

10 -19 Em

ployees

20 - 99 Em

ployees

100 - 499 Em

ployees

Over 5

00 Employe

es0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

3.35%

0.90% 0.96% 1.06%

1.43% 1.31% Average Growth Rate of All Businesses 1997-2006

3.4% Avg. Growth Rate of Self-Employed

Self-Employed Growth has been Steady and Strong

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

2,500,000

5,000,000

7,500,000

10,000,000

12,500,000

15,000,000

17,500,000

20,000,000

22,500,000

25,000,000

Number of Self-Employed

Prepared by the National Association for the Self-Employed (NASE) www.NASE.org

Source: U.S. Census Statistics on Nonemployers, 1997-2007 (http://www.census.gov/econ/nonemployer/index.html )

3.4% Growth Rate

Self-Employed Businesses are Helping to Drive U.S. Economic Growth

• The United States added nearly 1 million self-employed businesses between 2006 and 2007, bringing the total to 21.7 million, according to the U.S. Census Bureau. This is a 4.5 percent growth rate over one year.

• The self-employed added $992 billion to the U.S. economy in 2007, up from $970 billion in 2006, which is a 2.2 percent increase.

Prepared by the National Association for the Self-Employed (NASE), www.NASE.org

Prepared by the National Association for the Self-Employed (NASE), www.NASE.org

Source: Internal Revenue Service Statistics on Sole Proprietorships , 2007