Virginia small business profile
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Virginia Small Business Profile - In Virginia, small businesses are vital to the financial well-being of the state’s economy. Their contribution is essential for economic growth since they make up almost all employer firms in the state. As entrepreneurs and innovators, small business owners represented a diverse group in 2004 and continued to keep the state’s economy productive. The Small Business Profile provides information on the performance of small businesses in the state using the most current federal data available.This Small Business Profile was prepared by the U.S. Small Business Administration and provides information on the performance of small businesses in the state using the most current federal data available.
Number of Businesses
There were an estimated 567,830 small businesses in Virginia in 2004. Of the 172,785 firms with employees, an estimated 97.8 percent, or 169,053, were small firms. In 2004, the estimated number of employer businesses increased by 3.1 percent. The number of self-employed persons (including incorporated) decreased overall by 1.4 percent, from 361,649 in 2003 to 356,627 in 2004. Non-employer businesses numbered 398,777 in 2002, an increase of 3.8 percent since 2001, based on the most recent data available.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; U.S. Dept. of Commerce, Census Bureau; U.S. Dept of Labor, Bureau of Labor Statistics.)
In 2002 women-owned firms totaled 157,100, an increase of 19 percent from 1997, and generated $22.2 billion in revenues. Firms owned jointly by women and men numbered 54,138 with revenues of $12.9 billion. Women represented 33.8 percent of the self-employed persons in the state.
(Sources: U.S. Dept. of Labor, Bureau of Labor Statistics; U.S. Dept. of Commerce, Census Bureau.)
In 2002, Hispanic-owned firms numbered 19,017, an increase of 39 percent from 1997. Black-owned firms numbered 41,158, an increase of 23 percent; Asian-owned firms numbered 30,470, an increase of 38 percent; American Indian and Alaska Native-owned firms numbered 2,692, a decrease of 18 percent; and there were 456 Native Hawaiian and other Pacific Islander-owned businesses.
(Source: U.S. Dept. of Commerce, Census Bureau.)
There were an estimated 24,134 new employer businesses in 2004, 9.4 percent more than the previous year. Business terminations numbered 19,919 in 2004, a decrease of 3 percent. Business bankruptcies decreased by 21.5 percent and totaled 750 in 2004.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; Administrative Office of the U.S. Courts; U.S. Dept. of Commerce, Census Bureau.)
Small firms with fewer than 500 employees numbered 139,513 in 2002 and employed 1,402,928 individuals, or 48.1 percent of the state’s non-farm private sector. Net job gains among firms with fewer than 20 employees totaled 28,739, while large firms with 500 or more employees lost 39,161 jobs between 2001 and 2002.
(Source: U.S. Dept. of Commerce, Census Bureau, Statistics of U.S. Businesses.)
Small Business Income
Non-farm proprietors’ income, a partial measure of small business income, increased by 7.8 percent, from $15.8 billion in 2002 to $17.1 billion in 2003.
(Source: U.S. Dept. of Commerce.)
Commercial bank lenders are an important source of small business loans, and small firms usually rely on them for financing. Over the last 10 years the number of banks in Virginia has declined. The Office of Advocacy has identified banks in each state that make the most loans to small businesses. This information is available in its banking studies at http://www.sba.gov/advo/research/lending.html.