Microenterprise Ownership Rate

Definition

Total number of firms with 0-4 employees and nonemployer firms as a percentage of people in the labor force, 2010.

Description

For low-income individuals, self-employment is a significant source of employment and income, and business ownership represents an important opportunity to build assets. The higher the microenterprise ownership rate (and the higher the small business ownership rate), the higher the percentage of residents who have the opportunity to build wealth through business capital accumulation.

A microenterprise is defined as a business that requires $35,000 or less in start-up capital and has five or fewer employees. However, more than 80% of microenterprises in the United States employ a single owner-operator.

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Microenterprise Ownership Rate

Source

Statistics of U.S. Businesses (SUSB). Washington, DC: U.S. Department of Commerce, Census Bureau, 2010.

Non-Employer Statistics. Washington, DC: U.S. Department of Commerce, Census Bureau, 2010. 

Local Area Unemployment Statistics. Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics, 2010.