The Facts Behind The Figures

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This article represents the first in a series of special reports on small business and the professions. It summarizes a national study of smaller companies and their public accountants. The primary research for the report was conducted in November and December, 1981. It included two mail surveys supplemented by dozens of telephone interviews with a cross section of small business executives and public accountants.

A four-page questionnaire was mailed to a random sampling of 4,995 INC. subscribers, followed by a two-page questionnaire sent to a random sampling of 2,058 public accountants. Excluding undeliverable and incomplete returns, the net response rates were 20.4% and 21.8%, respectively. Some 993 subscriber returns and 440 accountant returns were then delivered to an independent computer facility for tabulating and 46 cross-reference summaries.

The subscriber respondents represent all 50 states and the District of Columbia, 24% of them with headquarters in the Northeast, 13% in the Southeast, 40% in the Central region, and 23% in the Mountain/Pacific states. Separated into seven industry categories, the majority of respondents are in manufacturing (32%) or wholesale/retail businesses (25%). Other major groups include business services (17%), professional services (13%), and construction/real estate (7%).

The accountant respondents represent 47 states and the District of Columbia; 32% of them have headquarters in the Northeast, 13% in the Southeast, 36% in the Central region, and 19% in the Mountain/Pacific states. While more than 90% of the respondents are Certified Public Accountants, about three out of four represent smaller accounting firms with one office and no more than three partners.

Complete results of the INC. surveys of subscribers and public accountants will be made available. For further information, send a written request to: Bradford W. Ketchum, Jr., INC. Magazine, 38 Commercial Wharf, Boston, MA 02110.

Vital statistics of the two respondent groups in this first study include the following:

Subscribers (993)

Avg. annual sales ($ mil.) $5.1

Avg. number of employees 62

Privately held corporation 84%

Publicly held corporation 6%

Proprietorship 7%

Partnership 3%

Use public accounting firm 89%

Accountants (440)

Sole practitioner 34%

Local 46%

Regional 8%

National 3%

Big Eight 9%

Under 50 employees 83%

Median no. of clients 269

Next month, INC. will publish Small Businesses and the Professions/II, summarizing a national study of smaller companies and their attorneys.