Small Businesses

Are Key To Connecticut’s

Well-Being

WASHINGTON, D.C. — Connecticut’s small businesses are key to the state’s well-being and account for a significant share of the state’s economic production and hiring, according to the Office of Advocacy’s Small Business Profile for the state, released this week.

The profile uses the most recent data available to provide details about small business employment, business starts and closings, bank lending, business ownership by minorities, women, and veterans, and firm and employment change by major industry and firm size.

“Small business is a catalyst for economic growth in Connecticut and in our nation,” said Winslow Sargeant, chief counsel for Advocacy. “In today’s economic climate, we need to continue to support entrepreneurship and promote policies that help small businesses grow and prosper.”

Small businesses totaled 327,122 in Connecticut in 2008. Of these, 73,779 were employers and they accounted for 50.8 percent of private sector jobs in the state. Small firms made up 97.3 percent of the state’s employers.

Connecticut’s real gross state product decreased by 0.4 percent and private-sector employment decreased by 4.8 percent in 2009. By comparison, real GDP in the United States grew 0.7 percent and private sector employment declined by 5.5 percent.

Business ownership is becoming more inclusive in the state. The number of both women and minority business owners has grown. In particular, minority-owned businesses numbered 39,854 in 2007, an increase of 46.8 percent over 2002.

The state’s businesses also showed signs of stability and improvement in the fourth quarter of 2009 compared to the first quarter.

For more information and a complete copy of the state and territory small business profiles, visit the Office of Advocacy website at www.sba.gov/advocacy/848.