What Industries are Small Businesses In?
- 10 Comments
- October 12th, 2008
Have you ever wondered which industries the small businesses of the United States are represented in?
For one thing, small businesses increasingly are becoming service businesses. They’re also getting out of retail.
When I say service businesses, I don’t mean flipping burgers. Instead, I mean accountants, lawyers, doctors, consultants, hair dressers, IT professionals, Web designers, and other service providers.
The NFIB (National Federation of Independent Businesses) has a site with some small-business information (actually, they call it “speech material” you can use in rah-rah talks about how wonderful small business is). That’s where I found this information about industries and small businesses:
In what industries are small businesses represented?
Small businesses are represented in virtually every industry. However, the following are the most common among those that employ people other than their owners: retail; construction; professional, scientific, and technical services; other services (generally personal services like barber shops); health care and social assistance; accommodations and food service; wholesale; administrative support and waste management services; and, manufacturing. The following are the most common among those that do NOT employ anyone: professional, scientific, and technical services; other services (generally personal services like barber shops); construction; retail; real estate, leasing and rental; health care and social assistance; administrative support and waste management services; arts, entertainment and recreation; and, transportation and warehousing. The biggest change in the last 25 years has been the increase in service businesses and the decrease in retail businesses.
In many ways, the trend toward small businesses becoming services oriented is just a reflection of what is happening to the U.S. economy as a whole. All sizes of businesses are heavily weighted towards services. Take, for instance, the number of non-farm employees for 2007. There were 115.4 million employees in services industries (this particular definition includes retail as a services industry), versus 22.2 million employees in goods producing industries.
See the SBA Office of Advocacy report of economic indicators (PDF) for numbers.
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Very interesting how businesses evolved these days.
ReplyI do agree that this is a tell, tell sign of the economy. With customer buying down, businesses that serve will be better off at surviving this down economic status.
ReplyExactly, Amanda.
ReplyThere’s always a little bit of padding when it comes to service industries because people always need services performed - and are willing to pay people to do so. And with many families having both husband and wife working, time is a factor. People are more willing to pay people to perform services for them that they themselves do not have the time to do.
ReplyWow. New theme! I like it.
ReplyI believe our service industry here in our country is booming and hoping for the continuing growth of this.
ReplyAnita: Nice new layout! What’s the biggest sector for small business companies? When does a small business become a mid-size company?
ReplyI believe with the growth of outsourcing services too. Hope the continuing growth of this sector as there are a lot of people now having great jobs at the comfort of their home.
ReplyYes, we share the same thoughts Arthur regarding the growth of outsourcing services. I’ve known a few who have started their outsourcing businesses as well.
ReplyBTW - Love the new look!
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