Dynamics of Employer Establishments, 2002-2003

The Office of Advocacy is collaborating with the National Women’s Business Council and the U.S. Census Bureau to produce 2002-2006 datasets for employer establishment dynamics—changes in the number and employment of establishments resulting from their expansions, contractions, and closings. The first set of data is summarized in Dynamics of Employer Establishments, 2002-2003 by Ying Lowrey. All of the employer establishments in the datasets were already in operation in 2002, so no data are shown for business openings (births); thus, the job changes shown do not reflect the total net change since they do not include the employment attributable to business births.
The establishment data are available by business type (privately or publicly held), industry, and receipts size, and by business owner’s gender, race, ethnicity, and geographic location. The establishments were identified in the 2002 Survey of Business Owners and their expansions, contractions, and deaths (and corresponding employment changes) are tracked using the 1989-2006 Business Information Tracking Series.
The first set of data, tracking 2002-2003 establishment dynamics, is available, with 2002-2004, 2002-2005, and 2002-2006 data to be added later. Highlights are as follows:

• Of the total establishments in operation in 2002, by 2003, 9.9 percent were closed, 31.6 percent had expanded, and 25.3 percent had contracted.
• The total employment as of 2002 was divided evenly between publicly and non-publicly held employer establishments. However, based on data for establishment closures, expansions, and contractions, 98 percent (almost 2.5 million) of the net job losses over the 2002-2003 period were in the generally larger publicly held establishments and 2 percent (51,000) were in non-publicly held establishments.
• Small establishments with less than $1 million in receipts had net job gains over the period.
• Industries experiencing net job gains included health care and social assistance; educational services; arts, entertainment and recreation; and agriculture support.
• Of the non-publicly held establishments, those owned by minorities and women had net job gains.
• By state, the three big net job gainers (in non-publicly held establishments) were Florida, New York, and Washington; while the three largest net job losers were Texas, Colorado, and Pennsylvania.

The data are available on the Advocacy website at http://www.sba.gov/advo/research/rs356tot.pdf. Questions may be directed to Ying Lowrey at (202) 205-6533 or advocacy@sba.gov.