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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (May 13, 1987)
Facts About Small Business (General There are about 15 million small busiacaa« in the l/n lted States, by size standards set by the U.S. Small Business Adm inistration. About h alf of small businesses operate full time, the rest part time. The number of small businesses has increased steadily during the past 30 years. In 1985, new business incorporations (one measure of new businesses) to tal ed about 668,904, a new record. The previous record o f 6.M .99I new business incorporations was set in 1984. Fiscal Year 1985 was a good year for small business. Small business income, as measured by sole pr<v prietorship and partnership in come. increased 12.3 percent during the first sit months of the year compared with the similar 1984 period. Employment During 1981-82, small business employment proved a moderating force in the recession. During these years, small businesses pro duced a total of 2.65 million new jobs, while large businesses were rutting their employment by 1.7 m illion. Thus all the 984.000 new jobs generated in 1981-82 came from small firm s. business workers Ls significantly higher than among workers in large businesses. Small firms pro duce 2-*A times as many innova tions as large firms relative to the num ber of persons employed. Innovation coming from small hi- tech firms Ls expected to increase Small firm s also have led employ in the coming years as a result of ment gains during the economic the small Business Innovation recovery and expansion. Em m Research Act. Under the Act, October 1984 through .September signed by President Reagan In 1985, employment in industries 1982, 12 federal agencies with dominated by small businesses large research and development (industries in which firm s with budgets must direct an increasing fewer than 500 employees ac amount of R & D contracts to count for 60 prrcent or more of small firms - (he source of most sales or employment) rose 5.9 innovations and new technologies percent; employ men! in in During the first three years of dustries dominated by large the Act, small firm s received businesses rose six-tenths of one $400 million in R A D contracts; percent. small firms are expected to Jobs generated by small firms Small businesses employ about h alf of the private work force, contribute 42 percent of all sales in the country and are responsi hie for 38 percent of the gross national product. Innovation Studies show (hat (he incidence of innovation among sm tll receive another $400 million in Fiscal 1986. are more likely to be filled by younger workers, older workers and women. M any of these workers prefer or are only able to work on a part-tim e basis, and thus ran be more easily accom Small businesses have been responsible for more than h alf of the new product and services in novations developed since W orld W a r I I. modated by small employers. One out o f every two new small businesses will fail within the first four years of operation, studies show. O verall, a firm 's chances of survival Increase with size; firms with 20 or more workers have a 20 percent Almost every energy related In Small businesses create two out of every three jobs, and thus are responsible for the m ajor cost in initial on-the-job training in basic skills. greater chance of survival than firm s with fewer than 20 workers. e -f novation of the past century has come from small business - for example, the air conditioner, the gasoline engine, the electric light, the electric auto, and petroleum cracking.