Self-Employment Growing in USA

The United States added nearly 1 million self-employed businesses between 2006 and 2007, bringing the total to 21.7 million, an annual growth rate of 4.5 percent.

Total receipts for self-employed businesses were $992 billion in 2007, a 2.2 percent increase from 2006. Most self-employed were individuals operating very small unincorporated businesses. Of the 21.7 million total, only 1.4 million were corporations and 1.2 million were partnerships.

California, Texas and Florida had the most self-employment in America, making up nearly 29 percent. Receipts in these states totaled nearly $308 billion — 31 percent of all receipts from self-employment nationwide.

Among all states, Georgia led the nation in the growth rate of self-employment with a 6.9 percent annual increase, followed by Alabama and North Carolina.

Three economic sectors made up more than 40 percent of the total receipts — real estate services ($177 billion); professional, technical and scientific services ($130 billion); and specialty trade contractors ($97 billion). These three sectors comprised of 7.2 million businesses and represented more than 33 percent of all self-employment.

The plumbing, heating and air-conditioning contractors industry reported a 9 percent increase in 2007, representing 11,000 additional businesses nationwide. The 137,990 businesses that made up this industry reported more than $8.1 billion in receipts, an average of nearly $59,000 per location. Among counties, Los Angeles, California; Harris, Texas; and Miami-Dade, Florida; had the most self-employed plumbing, heating & air-conditioning locations.

The florists industry reported an increase of nearly 1,400 self-employed businesses in 2007, to 25,609, with national receipts totaling $992 million. California led all other states in revenue in the industry with nearly $175 million in receipts. Among larger counties, Palm Beach, Florida; Honolulu; and Multnomah’ Oregon; generated the highest average receipts.

The child day care services industry had 691,289 self-employed businesses in 2007, with receipts totaling $8.9 billion. Los Angeles County, California; Cook County, Illinois; and Bronx County, New York; had the most self-employed child day care businesses, accounting for 11 percent of the businesses and 10 percent of the receipts in this industry. Among larger counties, Washington, Minnesota; King, Washington; and Anne Arundel, Maryland; generated the highest receipts per establishment.