The Nonemployer in Middle Georgia Seedbed of Prosperity 2008 Data Released June 24, 2010

What are Nonemployer businesses? have no paid employees, have annual business receipts of $1,000 or more ($1 or more in the construction industries) and are subject to federal income taxes.

How Important are they to our economy? Are a majority of all U.S. businesses yet less than 4 percent of all receipts. Many are self-employed whose businesses may or may not be their primary source of income Consist of 18.8 million sole proprietorships, 1.5 million corporations and 1.1 million partnerships

Some Nonemployers Electricians, Plumbers & Carpenters Real Estate Agents & Lessors Auto Mechanics & Body Repair Hair, Nail & Skin Care Clothing Stores Grocery Stores Truck Drivers Accounting & Bookkeeping Physicians Janitorial & Landscaping Investigation & Security Home Health Care Auto Dealers Child Day Care

Nonemployer Start-ups Tend to increase as unemployment rises & population increases Have younger owners than employer start-ups 3% become employers within 3 years of start-up 58% are home-based & are less likely to rely on financing than employer start-ups Partnerships & corporations have higher revenues & survival rates, & are more likely to become employers

National Results for 2008 All but two states — Texas and Louisiana, plus the District of Columbia — saw a decline in the number of nonemployer businesses between 2007 and The nation had 21.4 million nonemployer firms in 2008, a decrease of 350,000 from 2007 (1.6 percent), the U.S. Census Bureau announced today - June 24, 2010.

Middle Ga, the State & Nation in %3.7% Middle Ga’s share of Ga’s establishments is about 4.2% & 3.7% of its receipts $35,921 $40,510 45,093 Receipts per establishment average $35,921 in Middle Ga, versus $40,510 in Ga & $45,093 in the U.S. Growth - Since 2003, Mid Ga has a higher establishment growth rate & a lower receipt rate than the State & Nation

Latest Developments Mid Ga Nonemployers are optimists – receipts were going sour, but they perservered thru 2007 After major declines in receipts in 2007 & 2008, many gave up their dream Major declines occurred in Construction & Real Estate - in total & on a Receipts per Establishment basis Healthcare advanced in all respects, but receipts were best for Truck Drivers who stuck it out

Middle Ga Nonemployer Industry Concentration Nonemployers are clustered in 4 industries – – Leaders in total receipts are Construction 22% of receipts Real Estate 14% of receipts – Leaders in establishments are Admin & Support 12% of establishments mostly janitorial & landscaping Other Services 21% of establishments primarily personal services such as beauty & barber shops Receipts per establishment are highest in Transportation & lowest in Admin & Support

Middle Ga Region: Nonemployers in 2008 Number of Establish ments Receipts ($1,000) Receipts Per Estab % of Mid Ga Estab % of Mid Ga Receipts Total for all sectors 30,849$1,108,113 $35, % Construction4,368 $248,564 $56, %22.4% Real estate and rental and leasing2,275 $151,305 $6,5087.4%13.7% Other services (exc public admin) 6,469$133,377 $20, %12.0% Retail trade2,541$99,964 $39,3408.2%9.0% Transportation and warehousing1,387$99,065 $71,4244.5%8.9% Professional, scientific, and technical svs2,763$82,984 $30,0349.0%7.5% Health care and social assistance 3,059$82,800 $27,0689.9%7.5% Admin & Support & Waste Mang & Remed 3,628$55,456 $15, %5.0% All Other Industries4,359$154,598 $35, %14.0%

Middle Ga Region: Nonemployers by Industry Change Establishments Receipts in $000's Receipts per Establishment Amt%Amt%Amt% Total for all sectors (137)-0.4%($86,543)-7.2%($2,634)-6.8% Construction (358)-7.6%($60,328)-19.5%($8,454)-12.9% Real estate and rental and leasing (194)-7.9%($25,331)-14.3%($5,034)-7.0% Other services (exc public admin) %$1,7831.4%($1,241)-5.7% Retail trade (164)-6.1%($841)-0.8%$2,0745.6% Transportation and warehousing (119)-7.9%$4,8635.2%$8, % Prof, scientific, and tech svs (11)-0.4%($3,860)-4.4%($1,272)-4.1% Health care and social assistance %$10, %$1,3745.3% Admin & Support & Waste Mgt 872.5%($3,868)-6.5%($1,467)-8.8% All Other Industries (53)-1.2%($8,970)-5.5%($1,607)-4.3%

Counties in County Shares of $1 billion in receipts - mostly generated in Bibb & Houston with around 59% of establishments & receipts, but with 60% of the $ losses % Gains - Twiggs fared the best while Wilkinson was hit hardest Receipts per Establishment - Peach & Putnam are highest, with Twiggs & Putnam gaining the most

Nonemployers by County: 2008 Number of establish mentsReceipts($1,000) Receipts/ Estabs % of Mid Ga Estabs Estabs % of Mid Ga Receipts Mid Ga Receipts Baldwin 2,861 2,861$107,302$37,5059.3%9.7% Bibb 11,031 11,031$383,002$34, % 35.8%34.6% Crawford $23,439$30,5592.5%2.1% Houston 7,348 7,348$258,355$35, %23.3% Jones 1,934 1,934$72,634$37,5566.3%6.6% Monroe 1,937 1,937$72,212$37,2806.3%6.5% Peach 1,515 1,515$63,636$42,0044.9%5.7% Pulaski $19,303$33,2241.9%1.7% Putnam 1,796 1,796$81,604$45,4375.8%7.4% Twiggs $13,191$25,7641.7%1.2% Wilkinson $13,435$23,6951.8%1.2% Mid Ga Region 30,849$1,108,113$35, %

Middle Ga Region: Nonemployers by County Change Establishments Receipts in $000's Receipts per Establishment Amt%Amt%Amt% Baldwin % $ (1,378)-1.3% $ 290.1% Bibb2132.0% $ (23,959)-5.9% $ (2,898)-7.7% Crawford % $ (2,617)-10.0% $ (2,761)-8.3% Houston % $ (28,555)-10.0% $ (3,643)-9.4% Jones % $ (9,157)-11.2% $ (2,735)-6.8% Monroe % $ (8,072)-10.1% $ (2,642)-6.6% Peach % $ (7,409)-10.4% $ (4,189)-9.1% Pulaski30.5% $ (1,814)-8.6% $ (3,311)-9.1% Putnam % $ (812)-1.0% $ % Twiggs-9-1.7% $ % $ 1,3535.5% Wilkinson % $ (3,243)-19.4% $ (4,335)-15.5% Mid Ga Region % $ (86,543)-7.2% $ (2,634)-6.8%

Middle Georgia Businesses: 2008 Geographic Area Name Non employersEmployersTotal % Non employers Crawford % Twiggs % Jones1, , % Putnam1, , % Monroe1, , % Wilkinson % Baldwin2, , % Houston7,348 2,327 9, % Peach1, , % Pulaski % Bibb11,031 4,380 15, % Mid Ga Region 30,849 30,849 9,941 9,941 40,790 40, %

2009 & Beyond We don’t have current data on what happened to nonemployers in 2009 & so far in 2010 This data provides hints as to what it will tell us about the recession’s effects Losses are highly related to construction & real estate Gains are related to consumer spending - healthcare, retail & distribution