Small Firms Strengthen South Central Economy

April 19, 2004

In 2002-2003, gross domestic product continued to rise nationwide, while growth in employment remained slow to recover. Small businesses continued to be a source of economic strength. According to the Small Business Administration’s Office of Advocacy, about half of the private non-farm output and employment in the states covered by Insurance Journal-Texas/South Central—Arkansas, Louisiana, Oklahoma and Texas—stems from small firms with 500 or fewer employees.

ARKANSAS
Number of Businesses. The number of employer businesses in 2002 increased by 1.5 percent, to 60,668. The number of self-employed individuals decreased an estimated 3.7 percent in 2002; 97.0 percent of businesses were small.

Women-Owned Businesses. In 2002, self-employed women totaled 32,815, or 33.6 percent of self-employed workers in the state. Women-Owned Businesses totaled 42,600; 16.7 percent had employees.

Minority-Owned Businesses. Minority-owned firms represented 6.7 percent of the state’s businesses and accounted for 16.2 percent of employer businesses.

Business Turnover. Between 2001 and 2002, new employer firms increased 34.9 percent to 5,381. Bankruptcies decreased by 2.8 percent, to 282 in 2002; business terminations decreased by 5.4 percent to 4,491.

Employment. In 2000, small businesses employed 48.3 percent of the state’s 990,830 non-farm sector employees. Retail trade had the most small business employees. Between 1999 and 2000, small businesses added a net total of 17,068 employees.

Small Business Income. Non-farm proprietors’ income increased by 2.6 percent in 2002 and amounted to $5.3 billion.

LOUISIANA
Number of Businesses. The number of employer businesses in 2002 decreased by 1.9 percent, to 93,989. The number of self-employed individuals decreased an estimated 1.2 percent in 2002; 97.4 percent of the businesses were small.

Women-Owned Businesses. In 2002, self-employed women totaled 40,759, or 31.4 percent of the state’s self-employed workers. Women-Owned Businesses totaled 70,600; 16.3 percent had employees.

Minority-Owned Businesses. Minority-owned firms represented 14.1 percent of the state’s businesses and accounted for 16.3 percent of employer businesses.

Business Turnover. Between 2001 and 2002 new employer firms decreased 0.1 percent to 9,810. Bankruptcies decreased by 6.1 percent, to 672 in 2002; business terminations increased by 8.2 percent to 14,416.

Employment. In 2000, small businesses employed 53.6 percent of the state’s 1,592,357 non-farm sector employees. Health care and social assistance had the most small business employees. Between 1999 and 2000, small businesses added a net total of 13,797 employees.

Small Business Income. Non-farm proprietors’ income increased by 2.6 percent in 2002 and amounted to $9.3 billion.

OKLAHOMA
Number of Businesses. The number of employer businesses in 2002 increased by 0.1 percent to 75,250. The number of self-employed individuals decreased an estimated 11.6 percent in 2002; 97.3 percent of the businesses were small.

Women-Owned Businesses. In 2002, self-employed women totaled 48,431, or 33.6 percent of self-employed workers in the state. Women-Owned Businesses totaled 67,500; 16.1 percent had employees.

Minority-Owned Businesses. Minority-owned firms represented 10.2 percent of the state’s businesses and accounted for 18.9 percent of employer businesses.

Business Turnover. Between 2001 and 2002, new employer firms decreased 12.5 percent to 8,702. Bankruptcies decreased by 35.5 percent, to 607 in 2002; business terminations decreased by 6.1 percent to 8,923.

Employment. In 2000, small businesses employed 53.4 percent of the state’s 1,201,606 non-farm sector employees. Health care and social assistance had the most small business employees. Between 1999 and 2000, small businesses added a net total of 21,170 employees.

Small Business Income. Non-farm proprietors’ income increased by 2.6 percent in 2002 and amounted to $10.4 billion.

TEXAS
Number of Businesses. The number of employer businesses in 2002 increased by 1.0 percent, to 394,303. The number of self-employed individuals decreased by 2.6 percent; 98.6 percent of businesses were small.

Women-Owned Businesses. In 2002, self-employed women totaled 278,538, or 34.7 percent of the state’s self-employed workers. Women-Owned Businesses totaled 381,500; 16.6 percent had employees.

Minority-Owned Businesses. Minority-owned firms represented 24.0 percent of the state’s businesses and accounted for 19.6 percent of employer businesses.

Business Turnover. Between 2001 and 2002, new employer firms increased 1.4 percent to 54,009. Bankruptcies decreased by 5.1 percent, to 2,994 in 2002; business terminations decreased by 2.1 percent to 58,114.

Employment. In 2000, businesses with fewer than 500 workers employed 46.4 percent of the state’s 8,026,438 non-farm sector employees. Health care and social assistance had the most small business employees. Between 1999 and 2000, small businesses added a net total of 180,933 employees.

Small Business Income. Non-farm proprietors’ income increased by 2.6 percent in 2002 and amounted to $84.9 billion.

Topics Agribusiness

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Insurance Journal Magazine April 19, 2004
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