April 9 Through 15 Declared Small Business Week

Washington still third in highest business failure rate in nation

Seattle - Washington Policy Center, the state's premier public policy research and education organization, recognizes April 9th through 15th as "Small Business Week" as proclaimed by President Bush.

"Small businesses provide the backbone for our economy, both on a local and national scale,"� said Carl Gipson, director of Washington Policy Center's Small Business & Entrepreneurship research center. "Our elected representatives need to remain focused on improving our overall business climate, and that does not mean focusing on larger companies' needs at the expense of smaller firms."�

Washington's small businesses are failing just as much or more as they are succeeding. Our state has the third highest rate of business openings a year, but it also has the third highest rate of business failures per year, according to the U.S. Small Business Administration.

Small business owners repeatedly cite the skyrocketing cost of health insurance as their number one concern. According to a National Federation of Independent Business survey, in 1993, 63% of small businesses offered their employees health care insurance. By 2001, that number had dropped to 47%.

Some state small business statistics:

• 97% of all firms in Washington state have fewer than 50 employees
  Firms with fewer than 50 employees employ 1 million workers
  Firms with fewer than 50 employees employ 49.1% of the state's non-government work force

On a national level:

• During the recession of 2000-2001, small businesses created 1.15 million new jobs while larger firms lost over 150,000 jobs
  Business with fewer than 500 employees account for 99.7% of all employer firms and pay 45% of U.S. private payroll
  Small firms produce more than 50 percent of the nonfarm private U.S. Gross Domestic Product

On June 22nd, Washington Policy Center will kick off its new Center for Small Business and Entrepreneurship at a luncheon in Seattle. The new research center will focus on improving Washington's small business climate by publishing independent research and analysis and by working with legislators, citizens and media. The Center for Small Business & Entrepreneurship will operate under Washington Policy Center and will be funded completely by private donations.