A statistical and informational snapshot of today's businesses and how they are operating in the new economy.
A statistical and informational snapshot of the business world today
How many businesses are there?
- The population is growing.
- The gross domestic product continues to expand.
- The number of business enterprises outpaces the number of business closings.
Sources: Office of Advocacy, U.S. Small Business Administration; Bureau of the Census, Bureau of Economic Analysis.
| Population, Production, and Businesses with Employees, 1991 and 1995 |
| Year |
Total
population |
Gross domestic
product (in current $) |
Total number
of businesses |
| 1991 |
252,138,000 |
$5,917 billion |
5,687,000 |
| 1995 |
262,755,000 |
$7,254 billion |
6,220,000 |
Source: Office of Advocacy, U.S. Small Business Administration.
| The Population of Business Enterprises, 1992-1996 |
| Year |
New
incorporations |
Successor
businesses |
Business
terminations |
Year-end
total businesses |
| 1992 |
737,000 |
138,000 |
819,000 |
5,741,000 |
| 1993 |
776,000 |
136,000 |
801,000 |
5,851,000 |
| 1994 |
807,000 |
137,000 |
803,000 |
5,992,000 |
| 1995 |
812,000 |
162,000 |
869,000 |
6,057,000 |
| 1996 |
820,000 |
171,000 |
823,000 |
6,220,000 |
Businesses include all active unemployment-insurance taxpayers, including virtually all nonfarm employers, except households, railroads, and selected religious organizations.
How confident are business owners?
- A big majority--68%--of small-business owners expect to grow in 1997.
- Although they are not having trouble getting the financing they need, they see no reason to increase their debt.
- Most--61%--small-business owners have no plans to enlarge their workforce this year.
- Nearly 70% expect to expand their customer lists, increase revenues, and enhance profits.
The Greatest Challenges Facing Small Business in 1991
- Avoiding a cash-flow squeeze
- Keeping costs under control
- Coping with the continuing recession
- Finding qualified employees
- Paying for health insurance
The Greatest Challenges Facing Small Business in 1996
- Finding qualified employees
- Handling increasing insurance costs
- Coping with regulations and high taxes
- Dealing with increasing domestic competition
- Evolving with the changing business climate
Source: Annual Survey of Small Businesses, Dun & Bradstreet Corp., Murray Hill, N.J., 1991, 1997.
Does fact match hype?
- Only 5% of small companies regard the Internet as key to business, but in the past two years alone, the percentage of companies using on-line services has nearly doubled, approaching 40%.
- By 2000, the World Wide Web may be a significant distribution channel: $95 billion in sales.
- Companies are making money on the Web: 36% of on-line newspaper publishers report that their Web-based business is or will soon be profitable.
How Many Sites?
Number of World Wide Web sites responding to Web Server survey
199518,9571997739,706Source: Netcraft Web Server Survey
The first World Wide Web site was launched in 1993.
Users and Buyers
Estimated number of World Wide Web users and the percentage of those who buy products or services on the Web
199516 million users29% buyers199634 million users26% buyers2000163 million users45% buyersSource: International Data Corp.
Total On-Line Commerce
Commerce on the Web
1995$318 million2000$95 billionSource: International Data Corp.
Newspapers On-Line
Number of North American dailies on the Internet in 1997: more than 500
Number of newspapers charging subscriptions for all user access in 1997: 2
Percentage of on-line publishers who report profits for 1996 or 1997: 36%
Source: Newspaper Association of America.
Advertising On-Line
Total online advertising revenue1997$400 million-$750 million2000$3.1 billion-$4.8 billionSource: Internet Advertising, Forrester Research, Cambridge, Mass, 1996; Credit Suisse First Boston.
How many companies do it?
- 65% of companies with revenues of less than half a million dollars say they do not outsource.
- But of a group of companies characterized as the fastest growing in the United States, 83% do outsource.
U.S. Market for Outsourcing Services
1996$100 billion1998$165 billion2001$318 billionSource: Outsourcing Institute, 1996
Small businesses may not be outsourcing yet, but they will be before long.
Top Five Reasons Companies Outsource
