"Small business plays a key role in our economy," said Thomas M. Sullivan, Chief Counsel for Advocacy. "Entrepreneurs launch new ideas and they propel our economy's evolution. This dynamic risk-taking results in 60 to 80 percent of the net new jobs, so when economic conditions are favorable for growth, job gains are not far behind. That is exactly what has happened."

The report compiles data that indicate the health of small business including macroeconomic statistics, financial information, employment data, and business births and terminations by state. The annual report makes the data available for economists, researchers, and policymakers in an easily accessible and useable spreadsheet format.

The report found that 2003 saw an estimated 572,900 employer firm births and 554,800 terminations. This dynamic resulted in a net increase in employer firms of 18,100, or 0.3 percent, while the number of non-incorporated self-employed rose by 369,000, or 3.7 percent. The report also confirmed that by year's end interest rates were low and banks had relaxed lending standards, which set the stage for an uptick in job creation and employment.

The Office of Advocacy, the "small business watchdog" of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.

Source:sbaonline.sba.gov