According to new data released by the U.S. Census, the number of personal businesses – whicy are single person businesses with no employees – increased by close to 1 million in 2007 reaching 21.7 million. This is an increase of 4.5% over 20.8 million personal businesses recorded in 2006.
This increases the total number of U.S. small businesses (defined as less than 500 employees) to roughly 28 million.
The personal business category includes freelancers, independent contractors and other forms of self-employment. The Census derives this data from tax returns. This number includes full time and part-time personal businesses. The Census calls this group “nonemployer businessess.”
Personal business total receipts (roughly equivalent to revenue) grew 2.2% to $992 billion. This means personal businesses generated about 7.5% of America’s economic activity in 2007. The average personal business had about $46,000 in receipts in 2007.
Photo by Egahen.