proved a solid year for small business
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documents state of small business, examines key issues
[DEC. 29, 2006]
WASHINGTON -- American small business had a
solid 2005, despite the economic shocks of Hurricanes Katrina and
Rita, according to a new report issued by the Office of Advocacy of
the U.S. Small Business Administration. The Small Business Economy
for Data Year 2005 report examines the economic contributions of
small business, using data from a variety of sources.
"In 2005, the economy was shocked by devastating hurricanes in
August and September. Fortunately, for areas outside the Gulf Coast
region, the challenges proved to be short-term phenomena," said Dr.
Chad Moutray, chief economist for the Office of Advocacy. "As a
whole the economy bounced back, led by resilient small businesses.
The estimated 671,800 small-business starts in 2005 were higher than
the estimated 544,800 closures, leading to a new high of 5.99
million employer firms in the U.S. Clearly, small business had a
Moutray made his remarks during a speech publicly releasing the
report before the prestigious National Economists Club in
The report documents the state of small business in 2005.
Chapters and appendices provide an in-depth examination of key
issues facing small business.
Chapter 2 examines
small-business financing in 2005. It finds business borrowing to
be at an all-time high and says that commercial banks expanded
lending and eased lending standards in response to competition
from non-bank lenders.
Chapter 4 details
women's contribution to business, using multiple data sources.
Latest federal data show that women owned 6.5 million, or 28.2
percent, of nonfarm firms. These firms employed 7.1 million
workers with $173.7 billion in annual payroll.
Chapter 6 discusses
the vital role small businesses can play in local and regional
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To order copies of the report, as well as past annual versions,
call the Office of Advocacy at 202-205-6533.
For more information, visit the Office of Advocacy website at
The Office of Advocacy, the "small business watchdog" of the
federal government, examines the role and status of small business
in the economy and independently represents the views of small
business to federal agencies, Congress and the president. It is the
source for small-business statistics presented in user-friendly
formats, and it funds research into small-business issues.
The Office of Advocacy of the U.S. Small Business Administration
is an independent voice for small business within the federal
government. The presidentially appointed chief counsel for advocacy
advances the views, concerns and interests of small business before
Congress, the White House, federal agencies, federal courts and
[News release from the U.S.
Small Business Administration, Office of Advocacy]