SBE Council Report Points to Millions of Missing Businesses
WASHINGTON, Aug. 4, 2016 /PRNewswire-USNewswire/ — On this National Startup Across America Day, the Small Business & Entrepreneurship Council (SBE Council) released its third “Gap Analysis” report, which points to an estimated gap or shortfall of between 867,000 and 4.8 million businesses in the U.S. economy.
SBE Council chief economist Raymond J. Keating explained, “If we look at incorporated and unincorporated self-employed, and employer firms as shares of the relevant population, we see a significant gap in the number of businesses compared to where we should be. Indeed, these numbers point to some 3.7 million missing businesses in the U.S. in 2015.”
Keating added, “Looking at IRS data that offers the broadest measure of businesses in the U.S., if the previous growth in the business share of the relevant population had continued after 2008, the number of missing businesses in 2015 rises to 4.8 million.”
Noting that this is National Startup Day, Keating also observed, “If the recent pre-recession percentage high as a share of the relevant population had prevailed in 2015, there would have been approximately 106,000 more startups than there were in that year.”
In the report, Keating summed up, “Starting up, building and operating businesses are central to a nation’s economic well-being. After all, entrepreneurship is the source of innovation, economic growth, wage growth and job creation, today and in the future.”
SBE Council president & CEO Karen Kerrigan added, “As members of Congress celebrate Startup Day across their districts and states today, we hope they bring that spirit and energy back to Washington to advance policies that will encourage more entrepreneurship and small business growth. This would include policies that will improve capital access, and a tax and regulatory system that is less burdensome, costly and complex for small businesses.”
This third SBE Council “Gap Analysis” is scheduled to be followed by reports on productivity, income, jobs, and trade, with a final report highlighting the basic policy changes needed to close these gaps.
SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years, SBE Council has advanced key policies and initiatives to strengthen the ecosystem for startups and small business success. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil