Small Business Ownership Rate

Rationale

Business ownership is a fundamental engine for wealth creation. While not a direct measure of business capital, this indicator shows what percentage of the state's labor force own their own businesses. The higher the business ownership rate, the higher the percentage of residents who have the opportunity to build wealth through business capital accumulation.

About Measure

Percentage of labor force that owns employer and non-employer firms (as of 2000).

Source

U.S. Small Business Administration, Office and Advocacy. (2002). Small business economic indicators for 2000; and Bureau of Labor Statistics. (2002). Labor force data for states and selected areas, 1970-2001 annual average. Washington, DC: Author.