Dallas Small Business Economy

Strengthening the Economy by Strengthening Microbusiness:

A North Texas Forum

January 31, 2012

2DFW small business economy• 4th largest labor market in the U.S.• 661,000 establishments

– 3rd in self employment share – one in six workers are self employed

– 9th in share by microbusiness (1-4 employees)

• Approximately 49,000 new businesses start each year, 19,000 in City of Dallas

Source: City of Dallas Office of Economic Development analysis of U.S. Census Bureauand Bureau of Labor Statistics data.

3Business size (by employment)

79%

11% 10%

1%

75%

14%11%

1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0 1-4 5-99 100+

DFW US

Employees

Sha

re o

f to

tal e

stab

lishm

ents

Source: City of Dallas Office of Economic Development analysis of U.S. Census Bureau data.

4

82

19

2732

46

58

0

10

20

30

40

50

60

70

80

90

1948 - 1980 1981 1990 2001 2007

Tougher employment recessions

Mon

ths

to e

mpl

oym

ent

reco

very

Seven RecessionAverage Year Recession Started

Source: City of Dallas analysis of Calculatedrisk.org information.

5Job growth since 2004 (DFW Metro Area)

24%

5%

0%

5%

10%

15%

20%

25%

Self Employment Payroll Employment

Source: City of Dallas analysis of U.S. Census Bureau data and Bureau of Labor Statistics data.

Tot

al g

row

th in

pos

ition

s

6Annual job growth (before and after the recession)

1.6%1.8%

0.9%

-1.3%-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

Before After

Self Employment

Payroll Employment

Source: City of Dallas analysis of U.S. Census Bureau data and Bureau of Labor Statistics data.

Com

poun

d an

nual

cha

nge

7Income (before and after the recession)

$52,079

$47,269$49,159

$56,808

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Before After

ReceiptsWages

Source: City of Dallas analysis of U.S. Census Bureau data and Bureau of Labor Statistics data.

Per

sel

f em

ploy

ed e

stab

lishm

ent

and

payr

oll w

orke

r