Higher Income and Wealth Linked To Business-owning Households
2:44 PM February 1, 2010
The SBA Office of Advocacy recently released an article revealing that small business ownership helps to increase a household's overall well-being. A report released on January 28, 2010 finds that households owning small firms during 1998-2007 were more likely to be in the top 50% in income and wealth.
To view the full article, please visit - http://sba.gov/advo/research/rs357tot.pdf by George W. Haynes.
Finding highlights included:
* Households owning any business were significantly more likely to be high income earners in 2007 than in 1998; the largest percentage gain was among owners with more than one business
* In the latter part of the period - between 2004 and 2007 - the likelihood that households owning a small business had a high income increased by 4.2 percent and the likelihood that they had a high level of wealth increased by more than 20 percent, compared with increases of 2.1 and 5.2 percent, respectively, in households not owning businesses.
* The characteristics of households and businesses were somewhat different in 1998 than in 2007. By 2007, high income households were headed by younger people, while higher wealth households were headed by older people.
* From 1998 to 2007, households not owning a business increased read mean wealth by just under 40 percent; the comparable increase for those owning a small business was 63.4 percent.
- Office of SBA
For a comlete copy fo the study, visit the Office of Advocacy website at www.sba.gov/advo.
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