Nationally, what percentage of nonemployer businesses have annual
revenues (sales) are between $500,000 and $2,000,000 and greater than
$2,000,000. Please indicate over what base (total number NE
businesses)this is calculated, as well as the sources used to calculate percentage. |
Request for Question Clarification by
pafalafa-ga
on
24 Sep 2006 13:20 PDT
oa-ga,
After looking into this for quite a while, I've come to the following conclusions:
--The Census Bureau, the source of nonemployer stats, does not provide
a breakout by revenue.
--The Census Bureau gets its nonemployer figures from the
"administrative records" of the IRS. However, the IRS itself does not
report a category of nonemployer businesses in its own statistics.
--Instead, the IRS reports on "Sole Proprietorships" (in addition to
Partnerships, Corporations, etc). There appears to be a great deal of
overlap between the Sole Proprietorships and the nonemployer
categories, but there is not perfect overlap.
--Data on revenues for Sole Proprietorships is available for 2002
(this is the most recent year available) and can be broken out by
size. For instance, out of the total universe of 18.9 million Sole
Proprietorships in the US, with total receipts of $1.03 trillion, the
size breakout is as follows:
$500K-$1 million:
203,253 businesses
$138.1 billion receipts
$1-$2.5 million:
74,277 businesses
$107.8 billion receipts
and so on.
Breakouts are available for individual industry sectors (e.g.
Finance/Insurance) as well.
Let me know if the full set of stats for Sole Proprietorships would
meet your needs as a proxy for nonemployer data.
Cheers,
pafalafa-ga
|
Clarification of Question by
outsideagitator-ga
on
05 Oct 2006 21:58 PDT
Hi,
Unfortunatly this is not a good proxy. To suggest that of the
22,000,000 non-employer businesses, there are only .013% in the
indicated range simply doesn't make sense.
There is a decent sized group of S-, C-Corps, and LLCs who have no
employees, relying on independant contractors and the like.
Entrepreneurs with earnings in the above-500,000 zone are unlikely to
accept Sole Proprietorship tax status and tend to create a corporate
entity of some kind.
Is it possible to get at this data?
pl
|
Request for Question Clarification by
pafalafa-ga
on
06 Oct 2006 10:14 PDT
Good point.
The IRS data shows about 19 million Sole Proprietorships in the US --
a reasonable agreement with your non-employer number.
The vast majority of businesses in the IRS data are quite small:
12.7 million under $25,000
4.1 million $25k-100k
1.3 million $100k-250k
There are very few companies in the categories with larger incomes,
perhaps -- as you suggest -- because they've opted for other forms of
business organization.
Beyond that, I'm simply not aware of a source of data for the
information you're seeking.
Best of luck, though.
paf
|
