Employment,ownership, and Survival in microbusiness: A study of New retail and service establishments

This investigation provides new data and commentary on several neglected topics: employment contributions of microbusinesses, characteristics of the selfemployed, business survival rates, and psychological and social aspects of new business ownership. A survey and archival analysis of 413 retail and service establisments that began operation in 1985 is reported. The modal staff size of these establishments was three persons; 28% had no employees. Women, young people, and Latinos were among the larger groups of employees, although employment patterns varied according to size and type of business. The typical owner was male, white, in his 30s or 40s, and relatively inexperienced in business. Fifty-nine percent of the establishments survived two years; survival was associated with corporate ownership, with the owners' reliance on the business for a livelihood, and with their prior employment experience.