Small business driving economic recovery

Business information provider Dunn & Bradstreet reports that small businesses and entrepreneurs are driving innovation and job creation during the country’s economic recovery. The company’s “The State of Small Businesses Post Great Recession, An Analysis of Small Businesses between 2007 and 2011” indicates there are over 23 million small businesses in the U.S. that employ nearly 81 million workers and produce annual sales in excess of $6 trillion. The report said there has been some increase in the number of small businesses in the U.S. and growth among small business industries. However, during the 2007-2010 period small business failure rates have increased by 40%.
Between 2007 and 2010 Business Services, Natural Resources and Transportation had the largest percentage increase. Business Services increased by 103%, far outpacing the growth of Natural Resources and Transportation industries, both of which increased by 7%.
Low consumer confidence continues to plague the Retail industry as the number of small businesses declined by 15%. The Manufacturing and Insurance industries followed with declines of 8% and 5%, respectively.
North Dakota, Wyoming and Iowa have appeared in the top five states with the lowest business failure rates from 2007-2010. California had the highest increase in failure rates, 149%, from 2007 to 2010.