America: Increase in Businesses without Employees

Over 800,000 people went into business for themselves in America in 2005, as the number of businesses without employees reached 20.4 million.

Non-employer firms increased by 860,000, up 4.4 percent in a year. These businesses, known in the business industry as “lone wolves,” had receipts of $951 billion and make up approximately 78 percent of the nation’s 26 million-plus firms according to the U.S. Census Bureau.

Non-employer firms may be run by one or more individuals and can range from home-based businesses to corner stores or construction contractors. These firms are often part-time ventures with owners operating more than one business.

Among the fastest-growing non-employer industries in the United States are Web search portals (41.2 percent), Internet service providers (16.6 percent), nail salons (18 percent), electronic shopping and mail-order houses (12 percent), recreational vehicle dealers (12.1 percent) and landscaping services (11.1 percent).

The District of Columbia led the nation in the growth of these small businesses with a 9.6 percent increase between 2004 and 2005, followed by Nevada at 7.7 percent and Florida with a 7.6 percent growth rate. Georgia and Utah had increases of 7.6 percent and 7.2 percent, respectively.

Among the nation’s most populous counties, Los Angeles County, California had 799,108 non-employer businesses, with Cook County, Illinois, second at 380,457. Miami-Dade, Florida followed at 296,456.