Figures 2a and 2b show the demographic makeup of the self-employed in four demographic groups. For example, Figure 2a shows that 5.7 percent of females were self-employed, and Figure 2b shows that 35.7 percent of all self-employed people were female
Indiana 493,832 Small Businesses 106,097 Small Businesses with Employees 387,735 Small Businesses without Employees (Nonemployers)
1,173,626 Workers Employed by Small Businesses
State Economy Overall
• Indiana’s economy grew at a slightly slower rate than the United States in 2013. Indiana’s real gross state product increased by 2.1 percent compared to 2.2 percent for U.S. gross domestic product. (Source: BEA)
• The employment picture in Indiana has improved. The unemployment rate in Indiana declined from 7.1 percent in October 2013 to 5.7 percent in October 2014. This is slightly below the national average of 5.8 percent for the same time period. (Source: BLS)
Employment
• Indiana’s small businesses employed about half or 1.2 million of the state’s private workforce in 2012. (Source: SUSB)
• Almost all firms with employees are small. They make up 97.2 percent of all employers in the state. (Source: SUSB)
• Firms with fewer than 100 employees have the largest share of small business employment. Figure 1 offers further detail.
• In Indiana, small businesses created 45,868 net new jobs in 2012. The biggest gain was in the smallest firm size category of 20-99 employees. (Source: BDS)
• The number of people who were primarily self-employed in 2013 increased by 0.1 percent relative to the previous year.
• The state’s private-sector employment growth increased by 2.1 percent over the 12- month period ending in October 2014; this was below the national average growth rate of 2.3 percent. (Source: BLS)
16%
16%
15%
53%
Figure 1: Indiana Employment by Size of Firm
1-19 employees
20-99 employees
100-499 employees
500+ employees
Source: SUSB
The Small Business State and Territory Profiles report on the economic status of small business from 2007 to 2014. They include information on the number of firms, employment, demographics and other topics using the most recently available government data. They are a reference tool for researchers, policymakers, and small entities who are interested in how small firms are performing regionally or nationally. Note that this report defines small businesses as firms with fewer than 500 employees.
Income and Finance
• The number of banks reported in the Call Reports between June 2013 and June 2014 declined. (Source: FDIC) • In 2012, 102,273 loans under $100,000 (and valued at $1.3 billion) were issued by Community Reinvestment
Act lending institutions in Indiana. (Source: FFIEC) • The median income for individuals who are self-employed at their own incorporated businesses for the past
12 months was $42,001 in 2013. For individuals self-employed at their own unincorporated firms, this figure was $21,322. (Source: ACS) Note: Median income represents earnings from all sources. Unincorporated self-employment income includes unpaid family workers, a very small percent of the unincorporated self-employed.
Business Owner Demographics
• Table 1 shows the top industry for nine business owner demographics. For example, 37.9 percent of female- owned businesses were in the other services industry, and female-owned firms made up 18.0 percent of this industry.
Table 1: Top Industry by Demographic Group in Indiana, 2007
Demographic Group of Business Owners Most Common Industry % of Industry in
Demographic Group % of Demographic Group in Industry
Female Other services 37.9 18.0 Male Construction 70.4 19.0 American Indian and Alaska Native Retail trade 0.7 18.3 Asian Other services 2.8 19.6 Black or African American Other services 9.6 26.7 Native Hawaiian and Other Pacific Islander * * * White Construction 95.4 14.5 Hispanic Construction 2.0 15.6 Veteran Construction 12.5 17.6 *Indicates that the sample size was too small to be representative of the population. For more detailed information on businesses in your state, see www.sba.gov/advocacy/847/841921.
Source: U.S. Department of Commerce, Census Bureau, 2007 Survey of Business Owners via American FactFinder.
• Figures 2a and 2b show the demographic makeup of the self-employed in four demographic groups. For example, Figure 2a shows that 5.7 percent of females were self-employed, and Figure 2b shows that 35.7 percent of all self-employed people were female.
Indiana Small Business Profile, published in 2015 Page 2 U.S. Small Business Administration, Office of Advocacy
5.7%
9.6%
5.8%
9.6%
7.2%
11.4%
7.3%
10.9%
Female Male Minority Veteran
Figure 2a: What percent of each demographic group are self-employed in
Indiana?
Indiana United States
Source: ACS
35.7%
64.3%
11.7% 8.6%
37.1%
62.9%
25.6%
8.3%
Female Male Minority Veteran
Figure 2b: What percent of self-employed individuals in Indiana are in each
demographic group?
Indiana United States
Source: ACS
Business Turnover
• In 2010, 7,694 establishments opened in Indiana, and 67.1 percent survived through 2012. In 2013, 9,016 establishments opened, and 79.3 percent survived through 2014. (Source: BLS, BED)
• In the 1st quarter of 2014, 5,863 establishments opened and 6,408 closed in the state of Indiana. (Source: BED)
• Business bankruptcies declined from 2010 to 2014, signaling a stronger state economy. (Source: U.S. Courts)
International Trade
• A total of 8,239 companies exported goods from the state in 2012. Of these, 6,995 or 84.9 percent were small firms; they generated about one-sixth (16.4 percent) of the state’s total known export value. (Source: ITA)
Small Businesses and Employment by Industry
• Table 2 ranks the state’s industries by the number of small employer firms. For comparison, the three most common industries for small employer firms across the United States are professional, scientific, and technical services; other services (except public administration); and retail trade.
Table 2: Number of Indiana Small Firms by Industry, 2012 (ranked by number of small employer firms)
Industry Employer Firms Employer Firms Nonemployer Total Small
With 1-499 Employees With 1-19 Employees Firms Firms Other services (except public admin.) 15,025 13,874 67,415 82,440 Construction 12,809 11,883 45,761 58,570 Retail trade 12,050 10,649 38,936 50,986 Professional, scientific, & tech. svcs. 11,645 10,746 43,583 55,228 Health care & social assistance 10,113 8,498 28,718 38,831 Accommodation & food services 9,028 6,897 4,659 13,687 Manufacturing 6,671 4,496 6,995 13,666 Admin., supp., waste mgt., remed. svcs. 5,926 5,223 33,065 38,991 Wholesale trade 5,697 4,401 6,450 12,147 Finance & insurance 4,531 4,097 11,853 16,384 Real estate & rental & leasing 4,139 3,823 40,699 44,838 Transportation & warehousing 4,088 3,482 20,553 24,641 Arts, entertainment, & recreation 1,954 1,650 18,948 20,902 Educational services 1,389 1,085 10,177 11,566 Information 917 728 4,700 5,617 Management of comp. & enterprises 374 49 * 374 Forestry, etc. & agriculture support 248 236 4,062 4,310 Mining, quarrying, and oil & gas extrac. 169 132 858 1,027 Utilities 167 124 303 470 Unclassified 61 61 * 61 Total 106,097 92,057 387,735 493,832 Source: SUSB and Nonemployer Statistics. *Data for nonemployers not collected in these two categories.
See www.sba.gov/advocacy/additional-data-state-profiles for more detailed data.
Indiana Small Business Profile, published in 2015 Page 3 U.S. Small Business Administration, Office of Advocacy
• Table 3 shows small firm employment by industry. The three Indiana industries with the most small business employment were: manufacturing, health care and social assistance; and accommodation and food services (Table 3).
Table 3: Employment in Indiana by Industry and Firm Size, 2012 (ranked by small firm employment)
Industry Employment Small Firm % of
Small Firms Total Firms Industry Employment Manufacturing 175,156 455,851 38.4 Health care & social assistance 169,425 398,000 42.6 Accommodation & food services 145,437 256,077 56.8 Retail trade 111,935 309,602 36.2 Other services (except public admin.) 107,152 124,313 86.2 Construction 88,964 112,805 78.9 Professional, scientific, & tech. svcs. 71,992 104,175 69.1 Wholesale trade 65,827 111,514 59.0 Admin., supp., waste mgt., remed. svcs. 61,681 177,140 34.8 Transportation & warehousing 41,223 115,240 35.8 Finance & insurance 38,482 96,975 39.7 Arts, entertainment, & recreation 23,305 33,728 69.1 Real estate & rental & leasing 22,666 31,994 70.8 Educational services 21,870 66,442 32.9 Information 12,135 41,346 29.3 Management of comp. & enterprises 9,307 55,439 16.8 Utilities 3,042 14,656 20.8 Mining, quarrying, and oil & gas extraction 2,898 6,025 48.1 Forestry, etc. & agriculture support 1,082 1,539 70.3 Unclassified D D D Total 1,173,626 2,512,908 46.7 Source: SUSB. (D) indicates data suppressed to protect the confidentiality of individual firms.
For more detailed information on businesses in your state, see www.sba.gov/advocacy/847/841921.
Abbreviations and Resources
ACS American Community Survey, U.S. Census Bureau, www.census.gov/acs. BEA Bureau of Economic Analysis, U.S. Department of Commerce, www.bea.gov. BED Business Employment Dynamics, U.S. Department of Labor, Bureau of Labor Statistics, www.bls.gov/bdm. BDS Business Dynamics Statistics, U.S. Census Bureau, www.census.gov/ces/dataproducts/bds. BLS Bureau of Labor Statistics, U.S. Department of Labor, www.bls.gov. CEA Council of Economic Advisers, www.whitehouse.gov/administration/eop/cea. FDIC Federal Deposit Insurance Corporation, www.fdic.gov. FFIEC Federal Financial Institutions Examination Council, www.ffiec.gov. ITA International Trade Administration, U.S. Department of Commerce, www.trade.gov. Nonemployer Statistics
Nonemployer Statistics, U.S. Census Bureau, www.census.gov/econ/nonemployer.
SUSB Statistics of U.S. Businesses, U.S. Census Bureau, www.census.gov/econ/susb. U.S. Courts Administrative Office of the U.S. Courts, www.uscourts.gov.
Indiana Small Business Profile, published in 2015 Page 4 U.S. Small Business Administration, Office of Advocacy
Indiana
State Economy Overall
Employment
Income and Finance
Business Owner Demographics
Business Turnover
International Trade
Small Businesses and Employment by Industry
Abbreviations and Resources