The Nonemployer in Middle Georgia

Seedbed ofSeedbed ofProsperityProsperity

2008 DataReleased June 24, 2010

What are Nonemployer businesses?

• have no paid employees, • have annual business receipts of $1,000 or

more ($1 or more in the construction industries)

• and are subject to federal income taxes.

How Important are they to our economy?

• Are a majority of all U.S. businesses yet less than 4 percent of all receipts.

• Many are self-employed whose businesses may or may not be their primary source of income

• Consist of 18.8 million sole proprietorships, 1.5 million corporations and 1.1 million partnerships

Some Nonemployers

• Electricians, Plumbers & Carpenters

• Real Estate Agents & Lessors

• Auto Mechanics & Body Repair

• Hair, Nail & Skin Care• Clothing Stores• Grocery Stores

• Truck Drivers• Accounting &

Bookkeeping• Physicians• Janitorial & Landscaping• Investigation & Security• Home Health Care• Auto Dealers• Child Day Care

Nonemployer Start-ups

• Tend to increase as unemployment rises & population increases

• Have younger owners than employer start-ups• 3% become employers within 3 years of start-up• 58% are home-based & are less likely to rely on

financing than employer start-ups• Partnerships & corporations have higher

revenues & survival rates, & are more likely to become employers

National Results for 2008

• All but two states — Texas and Louisiana, plus the District of Columbia — saw a decline in the number of nonemployer businesses between 2007 and 2008.

• The nation had 21.4 million nonemployer firms in 2008, a decrease of 350,000 from 2007 (1.6 percent), the U.S. Census Bureau announced today - June 24, 2010.

Middle Ga, the State & Nation in 2008

• Middle Ga’s share of Ga’s establishments is about 4.2%4.2% & 3.7%3.7% of its receipts

• Receipts per establishment average $35,921 $35,921 in Middle Ga, versus $40,510 $40,510 in Ga & $45,09345,093 in the U.S.

• Growth - Since 2003, Mid Ga has a higher establishment growth rate & a lower receipt rate than the State & Nation

Latest Developments

• Mid Ga Nonemployers are optimists – receipts were going sour, but they perservered thru 2007

• After major declines in receipts in 2007 & 2008, many gave up their dream

• Major declines occurred in Construction & Real Estate - in total & on a Receipts per Establishment basis

• Healthcare advanced in all respects, but receipts were best for Truck Drivers who stuck it out

Middle GaNonemployer Industry Concentration• Nonemployers are clustered in 4 industries –– Leaders in total receipts are• Construction 22% of receipts • Real Estate 14% of receipts

– Leaders in establishments are• Admin & Support 12% of establishments mostly

janitorial & landscaping• Other Services 21% of establishments primarily

personal services such as beauty & barber shops

• Receipts per establishment are highest in Transportation & lowest in Admin & Support

Middle Ga Region: Nonemployers in 2008

Number of Establish

ments

Receipts ($1,000)

Receipts Per Estab

% of Mid Ga

Estab

% of Mid Ga

Receipts

Total for all sectors 30,849 $1,108,113 $35,921 100.0% 100.0%

Construction 4,368 $248,564 $56,906 14.2% 22.4%

Real estate and rental and leasing 2,275 $151,305 $6,508 7.4% 13.7%

Other services (exc public admin) 6,469 $133,377 $20,618 21.0% 12.0%

Retail trade 2,541 $99,964 $39,340 8.2% 9.0%

Transportation and warehousing 1,387 $99,065 $71,424 4.5% 8.9%

Professional, scientific, and technical svs 2,763 $82,984 $30,034 9.0% 7.5%

Health care and social assistance 3,059 $82,800 $27,068 9.9% 7.5%

Admin & Support & Waste Mang & Remed 3,628 $55,456 $15,286 11.8% 5.0%

All Other Industries 4,359 $154,598 $35,466 14.1% 14.0%

Middle Ga Region: Middle Ga Region: Nonemployers by IndustryNonemployers by Industry

2007-2008 Change 2007-2008 Change

EstablishmentsEstablishments Receipts in Receipts in $000's$000's

Receipts per Receipts per EstablishmentEstablishment

AmtAmt %% AmtAmt %% AmtAmt %%

Total for all sectors (137) -0.4% ($86,543) -7.2% ($2,634) -6.8%

Construction (358) -7.6% ($60,328) -19.5% ($8,454) -12.9%

Real estate and rental and leasing (194) -7.9% ($25,331) -14.3% ($5,034) -7.0%

Other services (exc public admin) 449 7.5% $1,783 1.4% ($1,241) -5.7%

Retail trade (164) -6.1% ($841) -0.8% $2,074 5.6%

Transportation and warehousing (119) -7.9% $4,863 5.2% $8,873 14.2%

Prof, scientific, and tech svs (11) -0.4% ($3,860) -4.4% ($1,272) -4.1%

Health care and social assistance 226 8.0% $10,009 13.8% $1,374 5.3%

Admin & Support & Waste Mgt 87 2.5% ($3,868) -6.5% ($1,467) -8.8%

All Other Industries (53) -1.2% ($8,970) -5.5% ($1,607) -4.3%

Counties in 2007-2008

• County Shares of $1 billion in receipts - mostly generated in Bibb & Houston with around 59% of establishments & receipts, but with 60% of the 2007-08 $ losses

• % Gains - Twiggs fared the best while Wilkinson was hit hardest

• Receipts per Establishment - Peach & Putnam are highest, with Twiggs & Putnam gaining the most

NonemployersNonemployers by by County: 2008County: 2008

Number of Number of establishestablish

mentsmentsReceipts Receipts ($1,000)($1,000)

Receipts/ Receipts/ EstabsEstabs

% of % of Mid GaMid Ga EstabsEstabs

% of% of Mid Ga Mid Ga ReceiptsReceipts

Baldwin Baldwin 2,861 2,861 $107,302$107,302 $37,505$37,505 9.3%9.3% 9.7%9.7%

BibbBibb 11,031 11,031 $383,002$383,002 $34,721$34,721 35.8%35.8% 34.6%34.6%

CrawfordCrawford 767 767 $23,439$23,439 $30,559$30,559 2.5%2.5% 2.1%2.1%

HoustonHouston 7,348 7,348 $258,355$258,355 $35,160$35,160 23.8%23.8% 23.3%23.3%

Jones Jones 1,934 1,934 $72,634$72,634 $37,556$37,556 6.3%6.3% 6.6%6.6%

Monroe Monroe 1,937 1,937 $72,212$72,212 $37,280$37,280 6.3%6.3% 6.5%6.5%

Peach Peach 1,515 1,515 $63,636$63,636 $42,004$42,004 4.9%4.9% 5.7%5.7%

Pulaski Pulaski 581 581 $19,303$19,303 $33,224$33,224 1.9%1.9% 1.7%1.7%

Putnam Putnam 1,796 1,796 $81,604$81,604 $45,437$45,437 5.8%5.8% 7.4%7.4%

Twiggs Twiggs 512 512 $13,191$13,191 $25,764$25,764 1.7%1.7% 1.2%1.2%

Wilkinson Wilkinson 567 567 $13,435$13,435 $23,695$23,695 1.8%1.8% 1.2%1.2%

Mid Ga Region 30,849 $1,108,113 $35,921 100.0% 100.0%

Middle Ga Region: Middle Ga Region: Nonemployers by Nonemployers by

County County 2007-2008 Change2007-2008 Change

EstablishmentsEstablishments Receipts in $000'sReceipts in $000's Receipts per Receipts per EstablishmentEstablishment

AmtAmt %% AmtAmt %% AmtAmt %%

Baldwin -39 -1.3% $ (1,378) -1.3% $ 29 0.1%Bibb 213 2.0% $ (23,959) -5.9% $ (2,898) -7.7%Crawford -15 -1.9% $ (2,617) -10.0% $ (2,761) -8.3%Houston -46 -0.6% $ (28,555) -10.0% $ (3,643) -9.4%Jones -96 -4.7% $ (9,157) -11.2% $ (2,735) -6.8%Monroe -74 -3.7% $ (8,072) -10.1% $ (2,642) -6.6%Peach -23 -1.5% $ (7,409) -10.4% $ (4,189) -9.1%Pulaski 3 0.5% $ (1,814) -8.6% $ (3,311) -9.1%Putnam -23 -1.3% $ (812) -1.0% $ 129 0.3%Twiggs -9 -1.7% $ 473 3.7% $ 1,353 5.5%Wilkinson -28 -4.7% $ (3,243) -19.4% $ (4,335) -15.5%Mid Ga Region -137 -0.4% $ (86,543) -7.2% $ (2,634) -6.8%

Middle Georgia Businesses: 2008Middle Georgia Businesses: 2008Geographic Area Name

Non employers Employers Total

% Non employers

Crawford 767 111 878 87.4%Twiggs 512 82 594 86.2%Jones 1,934 364 2,298 84.2%Putnam 1,796 465 2,261 79.4%Monroe 1,937 510 2,447 79.2%Wilkinson 567 162 729 77.8%Baldwin 2,861 844 3,705 77.2%Houston 7,348 2,327 9,675 75.9%Peach 1,515 494 2,009 75.4%Pulaski 581 202 783 74.2%Bibb 11,031 4,380 15,411 71.6%

Mid Ga RegionMid Ga Region 30,849 30,849 9,941 9,941 40,790 40,790 75.6%75.6%

2009 & Beyond

• We don’t have current data on what happened to nonemployers in 2009 & so far in 2010

• This data provides hints as to what it will tell us about the recession’s effects

• Losses are highly related to construction & real estate

• Gains are related to consumer spending - healthcare, retail & distribution