Starting a Small Business

Starting a Small Business

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Coordinator: Thank you all for standing  by. At this time I would like to inform   all participants that your lines are on  a listen only mode during the conference.   This call is being recorded. If you have any  objections you may disconnect at this time.   I will now turn the call over to  Ms. Lynda Lee. Ma'am, you may begin. Lynda Lee: Good afternoon everyone. My name is  Lynda Lee and I'd like to welcome everyone to   the Exploring Census Data webinar series. This  is our fourth installment of the series where  

we bring you monthly webinars based on popular  topics. Our webinars are presented in a format   where we include real life use cases and the  opportunity for Q&A at the end of each session. And if you would like to view it again we  offer the recordings and transcript on our site   typically between five to ten  business days after the live session.   The link on this slide takes you to a page  where you can learn more about our recordings. Today's webinar on starting a small business using  Census data, is the first in our series for this   year and today you are in for a treat. We have  two seasoned presenters ready to dive into the   data to show you how Census data can be valuable  in your process of starting a small business.

Up first is Mr. Andrew Hait. Mr. Hait is an  economist with over 30 plus years of experience   with business data. His current capacity includes  being a project manager for one of our data tools,   called the Census Business Builder. Our  next speaker is Mr. Caleb Hopler. Mr.   Hopler is a statistician with our demographic  program called American Community Survey. Before I hand over the presentation to our  first speaker, let's take a look at what we   will be covering today. I will start off by  doing an overview about the Census Bureau.  

And to build in more time for today's topic the  next few slides will be high level and very brief.   If you're interested in learning more,  please visit our site, and   explore our Census Academy section where we  have many recordings on the general overview. Then I will hand the presentation  over to my colleague, Mr. Andrew Hait,   where he will take you through the types of small  businesses and how Census data can be useful when   you're looking to start one. Mr. Hopler will  then be relating the demographic aspect from  

the American Community Survey that are important  to know and demonstrating how we access this data. We'll then volley the ball back  to Mr. Hait where you'll learn   about the business data from the county  business patterns, non-employer statistics,   the Annual Business Survey and our  newer program called the non-employer   statistics by demographics. You'll also  learn how to access these type of data   and at the end of each session we will open  the lines up for a Q&A section of the webinar.

The Census Bureau is the federal government's  largest statistical agency where we conduct   over 130 plus surveys each year. Listed  on this slide are some of our well known   surveys that you may be familiar with.  The decennial census takes place every   ten years and is the population and  housing count of the United States.

Next, the American Community Survey is an annual  survey of the nation's population. And in a little   while Mr. Hopler will dive more into this program.  The economic census is our most comprehensive   program for business data, taking place every  five years, in the years ending in 2 and 7.   The Census of Government is the public  sector's counterpart of the Economic Census. So these are only a handful of our  surveys. When you have a moment I highly   encourage you to check out  to learn about our other surveys that  

we conduct and the types of  data that may interest you.   This slide shows the relationship between the  frequency of data release and the level of detail. In general, the more timely  the data the less detail.   With the Economic Census at the bottom of  the pyramid because it takes place every   five years and is the most comprehensive  data source when it comes to business data.  

But as you move up the pyramid the data  released more frequently with less details. This slide shows some key terms that may be  helpful for you to know when you're using Census   Bureau data. NAICS is the North American Industry  Classification System that is used to classify   each business. A business is classified  on the majority of the business activity.   So for instance, if a business location  manufactures a product in the back   and has a retail store up front, it can be  classified as a manufacturing establishment   if over 50% of the activity occurring  at that location is manufacturing.

Next is a term establishment as opposed  to companies and firms. An establishment   is a single location. Firms can have multiple  establishments under them. So an oversimplified   example would be a parent/child relationship  where a parent can have multiple children.

And finally Titles 13 and 26 are the codes that  allow us to conduct surveys and ensure privacy   and confidentiality to all of our respondents. Now  I know I went over everything on a high level and   very fast. If you're interested in learning more  about any of the content in the overview, please   visit We have many helpful webinars  archived on our site found under Census Academy. And now I would like to turn over the  presentation to my colleague, Mr. Andrew Hait. Andrew Hait: Thank you so much, Lynda.  Let me go ahead and share my screen.   So again, my name is Andy Hait. I'm  an economist at the US Census Bureau.  

And today I'm going to be walking through  some of the steps that businesses can take   and the data that we have at the  Census Bureau that can help them. When we think about the way the Census Bureau  could help entrepreneurs with opening and   starting a new business, this slide provides a  very simplified look at the four basic steps that   entrepreneurs go through when they are starting a  business. To start off they come up with the idea. I've decided I’m going to retire from the Census  Bureau and I want to open a Greek restaurant in   Anne Arundel County, Maryland. That is my original  idea. Step 2 is I then conduct market research   to determine is opening a Greek restaurant  in Anne Arundel County, Maryland a good idea,   or is maybe a neighboring town even better? Within the county are there specific cities or  towns that I might want to look at? What type of   employment data or payroll data for the existing  restaurants do we have, and what on average,   do restaurants in this county, pay their  employees? These types of statistics could   be very, very useful to businesses when they are  deciding whether or not their idea makes sense.

Now periodically in conducting that  market research they have to loop back   to the original idea. Maybe opening that  Greek restaurant in Anne Arundel County   is not a great idea. Maybe opening it in one of  the neighboring counties is a better idea. Or   maybe not even opening a restaurant at all.  Maybe I want to open a catering business. So that constant looping back and  forth between step one and step two,   are typical of how small businesses get started.   Once they finish completing that market  research, businesses and entrepreneurs go ahead   into step three where they're looking at securing  the funding that they need to open their business;   determining an actual location and signing a  lease for that particular physical location;   and all of the other steps that are involved  in sort of getting the business off the ground.

And finally, in step four, the business opens.   Even once the business is opened they periodically  can loop back to step one. I've been running my   business for a year. It seems to be doing  okay. But could I be doing even better?   Should I maybe consider adding some  other product lines to my restaurant?   Maybe do I want to offer services that I'm not  currently providing, like a catering operation? Of these four steps the Census  Bureau can help with step two.   And when we help with step two it's important  to think about the different types of businesses   and how the Census Bureau data fit. So when we  think about the two basic types of businesses   they are B to B or what we call businesses  that cater to other businesses and B to C   businesses. Businesses that  cater to the general public.

Understanding what type of business  you're interested in opening,   helps users understand which specific  programs in the Census Bureau best meet   their needs. So for example, if I was opening  a business that caters to other businesses,   the customers of my business would be other  businesses, so that would be economic data. The competitors of my business would also be other  businesses so that would be our business data   again. And finally, the suppliers, complementary  businesses, and other sort of related businesses  

again, would be business data. So those  demographic statistics might not be as   important for a B to B business because my  customers of my B to B would be other businesses. However, if I was interested in opening a  business that caters to the general public,   what we typically call a B to C business, we'd  have the same questions as above, but those   particular data variables would then be different  because the customers would be demographic data. So in today's session we're going to  be walking through an example of a   person who wants to open an automobile  parts and accessories store, which is   classified using the North American Industry  Classification System, or NAICS code 441310. This is not a B to B business, it's a  retail store. So it's a B to C. So the   customers of my business are going to primarily be   people who own cars - shade tree mechanics who  live within a certain distance of the business.  

The competitors for my automobile parts  and accessory store would be other auto   parts stores in the area. So knowing something  about how many of them are, would be great. And then finally, my suppliers are the auto parts  wholesalers that I'm going to be buying those   parts from to sell in my retail store. A second  example that sort of builds on the same auto parts   theme, is an auto parts wholesale business. This  is not a B to C business. The customers of an auto  

parts wholesaler are primarily other businesses.  In this case the customers would primarily be auto   repair facilities, used car dealers, and retail  parts stores that are in that particular area. However, knowing something about  the customer of my customers,   the customers of those retail parts stores or  the customers of those auto repair facilities   could be really useful because it would help  me understand what types of products do I want   to sell in my wholesale business to those auto  repair facilities or those retail parts stores.

If I had a customer that had  customers that were in a fairly   higher income area then perhaps providing more  brand new parts would be really important.   Whereas, if a customer of my auto parts wholesale  business was a retail store that was located maybe   in a slightly lower income community, maybe  some of those recycled or those repaired,   or those refurbished are going to be half the  cost of a brand new part might be really good. So these data are all really important. And the  Census Bureau programs provide information that  

can help guide these decisions. So the  first program we're going to talk about   today and then I'm going to turn it over to  my colleague, Caleb Hopler, is the American   Community Survey. This is a fantastic program that  could help those B to C businesses, understand   the demographic, socioeconomic, and housing  characteristics of the areas that they serve. So with that, I'm going to turn it  back over to Caleb. Go ahead, Caleb. Caleb Hopler: Thank you very much, Andy. I'm  going to go ahead and share my screen here.  

As mentioned, my name is Caleb  Hopler. I'm a survey statistician   for the American Community Survey  Office here at the US Census Bureau.   I'd like to talk about the American Community  Survey or for short, the ACS, and how this data   can provide you with key statistics to build  your workforce and define your target market.

So a little bit of a background on the  ACS. It is the nation's most current,   reliable, and accessible data source for  social, economic, housing and demographic data   at many geographic levels. And we have topics  such as age, commuting, income, employment,   and I'll actually show you a lot more  on the next slide, but first I want to   share about our three key annual data  releases that you can see on the right. So our one year estimates are for large  populations. In other words, it's for   data, for areas with populations of  65,000 or more, and then we also have   the one year supplemental estimates for small  populations of 20,000 or more. And lastly,  

we have our five year estimates. This is data for  all areas. So it would be great to get very small   populations. And I'll get into the geographies  and the availability in just a few slides here. So the ACS provides detailed information  about the population and workforce in   local communities that can for example,  help businesses choose appropriate locations   perhaps for a new store, their office or  their warehouse forward to expand as well.  

And then such variables that we have that could  be useful for businesses, are labor force status   like employment, unemployment,  full time, part time status,   the means of transportation to work, and then also  the travel time to work, income and occupation. We have household income, earnings, occupation,  industry, even education like the highest level   of education that's been attained, or the  field of Bachelor's Degree. So these variables   and more help to define your target market and  give an insight into your workforce as well. The ACS provides data for more geographies on  an annual basis than any other household survey.   In total we provide data for over 805,000  geographic areas which relates to over   35,000 communities within the United States.  So the image on this slide shows some of the  

geographies for which ACS data re produced,  and then also the relationship between them. So the lower geographic areas fit neatly within  the larger areas directly connected by the lines   you see on the screen. So example, the school,  the congressional and state legislative districts,   they fit neatly within states and they  don't cross the state boundaries. However,   they may cross the boundaries of counties or  surrounding metropolitan areas for example.

You can see here at the very bottom of the  vertical line is the block group. That's   the smallest geographic building  block that the ACS provides data.   The ACS's is unique ability to report on  a wide range of geographies is what gives   it such a broad appeal. So let's go into a little  bit of an example of how these geographies relate   to each other and why it's  actually important to you. If you're starting a business and let's just  say you have an idea you would like to start   in the county of El Paso. You want to know is  El Paso even the right place; is Texas going to   be still the ideal for your business; where in  El Paso are you going to place your business? So you can look first at general statewide  statistics - economic, social, housing,   demographic type data with ACS for the state  of Texas and then look at the county of El Paso   and compare if you'd like, to other counties,  whether it's the surrounding counties or   an area of a region or the entire state. You  can compare those statistics and if you still  

realize okay, yes, county of El Paso is where I  want to be, let's divide that into Census Track. Census Track here you can start to get a  little bit of an idea of a "neighborhood level"   because it divides very fine where   you can compare between the Census Tracks to  find the right area. Divide that even further   and now you realize okay, I can look at my block  group and get the very finite specific area   that would be best for my business or best to  send out marketing for my products or services. And even I'm getting a great understanding into my  workforce, such as their commuting characteristics   to or from, or what have you. So now that I've  gone over the basics of the ACS, its variables and   some of the geographies, I would like to  highlight some differences between the ACS   and in the Census economic programs that  my colleague Andy will be talking about. So first, ACS is at the household level.  It's not at the establishment level.  

And then also when we're talking  about industry, ACS is categorized   with its industry by Census industry codes.  So whereas economic programs utilizes   NAICS the ACS can't use NAICS because since  we are a household survey it just doesn't fit   to where an establishment survey - so like  NAICS is based off of establishment surveys. Since we're not based off of where  people work but based where people live,   we had to create our own code, so that's  the Census industry codes. And then lastly,   we do have differences in our geographies. Econ  goes by zip codes but we have something similar.   We have statistical boundaries that are called zip  TAs. And that's simply zip code tabulation area. If you're looking for tribal business, when  you're looking at economic programs tribal   businesses are denoting the establishment  itself that has identified as tribal.  

With the ACS you are going to be looking at tribal  areas, so boundaries around a geographic area,   such as a Hawaiian homeland or getting down  into Census tribal track or tribal block group. And then also there are public establishments.  So if someone is looking at creating a business   to help support services for our local  government, economic programs is going to be   showing data based off of that establishment  itself, the local or state government. When you're looking at ACS data again,  you're looking at a geographic area,   not a place. So we would have our legal areas,  legal boundaries. And so you could think of a  

congressional district, school district,  state legislative district, etc. The ACS is the primary data source  to understand local conditions and   trends throughout the United States. So it's  a rich source of information for businesses.   The ACS provides critical information that  businesses need to make investments and   operational decisions to help generate  economic activity, boost employment,   and improve the standard of living  in communities across the country.

So some examples of how ACS data are used,  you can use it to determine when and where   to open new facilities, or expand existing ones  based on population and demographic trends.   Likewise, you can create effective  marketing or merchandising strategies to   better serve customers and investors. Use ACS data to inform hiring  decisions and workforce evaluation   or forecast growth in sales to  make better strategic decisions.   And stock shelves with the goods  suited to local household incomes   or demographics. You can invest in infrastructure  improvements and also perform risk analysis. We do feature several videos in the library  section of the ACS Web site that showcases how ACS   data are being used by the business community. So  one example is how Target uses ACS data to better  

serve their guests. And we also have another  video of how the Greater Houston Partnership   uses ACS data to help them understand  how their population is changing   and encourage economic development in Houston. So participating in the ACS gives communities  the information they need to attract   businesses. An example here of in real life how  ACS data is used, if the Maricopa Association   of Governments - they use ACS data to create  commute shared reports. So these reports show the  

area from which a worker can commute in  30 minutes or less to a given location,   and provide a useful picture of the residents,  workers, and employers near that given location. The reports present ACS data on educational  attainment, median household income,   median age, occupation and - as well as from  other data sources for the commute shed.   The reports were meant to be used for  economic development opportunities   with potential businesses  locating throughout their region. Also another cool use case of ACS data but also of  economic data as well, through the Census Bureau,   a successful high end component manufacturer for a  mountain bike considered opening his own bike shop   to sell his manufactured components along with  mountain bikes and other components. So he used  

ACS data to identify the potential customers  and he was looking for young professionals   with moderate to high median household income  that he could then market his new business. He also used Census business data to identify  locations where sporting goods stores   which is NAICS 451110, that includes bike shops,  where they are located. These data not only   identified possible competitors to  his business, but also potential   businesses to collaborate with by opening  a lease department within a larger store.

There are a lot of different ways to access ACS  data. I'd like to share just a couple of selective   ways to access ACS data of our various data tools.  So first of all we have Quick Facts, and as the   name implies, it's a very quick way to grab  facts fast. It shows key statistics at various   geographic levels that you could see either as  a good print out of a data table, or you can   even make a dashboard and map it out and compare  the statistics to the surrounding geographies.

The My Congressional District and My Tribal Area,  those are tools that pull key statistics for a   particular congressional district or a tribal  area. On the map for emergency management helps   emergency professionals and planning personnel  to be able to utilize ACS data, take a look at   a current emergency or pandemic, or even historic  issues within the United States, and figure out   and for planning purposes, where to send resources  and who to help what is the current picture. And also we have Census Business Builder  which is a sweet tool that marries   economic data and ACS data together, to provide  a great overview picture of a particular area   and will give you all of the  business type data that you need.   Tiger line shape files are files that you  can map out data and create your own maps. And what's nice is we also have these shape  files with selected demographic data, ACS data   so that you can create very quickly, a map   according to your needs. A couple of other  things - we have the API, the Application  

Program Interface is a quick way to access  ACS data for your different apps or programs. A new program is the COVID-19  data hub. And so this program here   provides economic and demographic resources  concerning the current pandemic of COVID-19.   And lastly we have the  which is the Census Bureau's main data   dissemination platform. And I would actually  like to show a quick demo of this platform. So if I were to want to open up a particular store  I could go into to understand  

the geographic area that I want to  place that store in and then what kind   of statistics that will allow me to pull  in the best products for my store, etc. So if I want to look at maybe I'm interested in  looking at “neighborhoods” to start a business   within a county in Florida, and I want to get as  much data as I can to get a general overview and   idea, I'm going to go to Advanced Search and I  will start off with keying into my geographies   and then I will go down to a great way to  go to a Census Track to get "neighborhoods." Go into Florida and then I would just  type in - or I could scroll down to   Orange County, Florida and I'm going to choose  either all of the Census Tracks within that county   or I can click random ones that fit my general  area and then I can go ahead and click Search.   This is going to bring up all of the tables that   if I click Tables here, I can see all of  the tables that apply to those geographies.

And if I want to narrow it down one way that I  could do that is actually if I search up here   starting up here, and I type in DP0*. So DP0* -  the DP is data profile and then if I put - place   hat star that means it'll pull up all tables that  start with DP0. I'm going to click Search here.   And as you can see, it has now pulled out  all of the different tables for those Census   Tracks that I had originally placed and I can  great selected characteristics of economics,   housing characteristics, social  characteristics such as employment status.

I can find disability status or the  number of vehicles that are in a home,   household type, the relationship and much, much   more. So to continue the conversation  as I wrap up, you can follow ACS   information and updates by  signing up for the gov delivery   at the top left there. You can also  follow us on social media at #ACSData. Of course to learn more, the best place to  go is our Web site at  

But if you'd like to call or write us our email  here, ACS.User.Support. And then the number you   see on the screen would be great ways to get  hold of us so that we can answer your questions. So one last thing before I turn it over to Andy.  

If you have used ACS data to make  an important decision or help your   community or to expand your business, please  visit the link at the bottom of the slide.   We would love to hear your data story and we'd  love to be able to put it on our Web site as well. So by hearing and seeing your  data story it helps provide   further support for the importance of the  data we collect here at the Census Bureau,   and it's a great way to further promote our  data. So I'll now turn the presentation over   to my colleague, Andrew Hait who will  walk us through the economic programs. Andrew Hait: Great. Thank you so  much again, Caleb. So as you can see,   the American Community Survey is an amazing  resource that entrepreneurs can use to help   them understand the demographic, socioeconomic  and housing characteristics of their customers.

When most business owners think about their  business they could probably if you ask them,   to describe an ideal customer. So identifying  those communities that provide that data,   that have a large number of those particular  customers, can be incredibly valuable.   It's especially important, the American Community  Survey is especially valuable because of that   fine level of geographic data  that you can get down to.

Caleb pointed out that the American Community  Survey is available down to the Census Track   levels or what we closely call or sort of call  a neighborhood. It's not exactly a neighborhood   but it's as close as we get to a neighborhood. And  those could be really valuable to entrepreneurs.   But as valuable as the demographic data are,   they are only part of the data that an  entrepreneur, a business owner needs. They also need business data about other  businesses in their industry. So that they can   compare themselves to other businesses like them.  And the first two programs I want to talk about  

are programs called County Business Patterns,  or CBP and non-employer statistics or NES. County Business Patterns is an annual program that  we publish every year, that publishes information   on employer businesses. These are businesses with  one or more paid employee who filed a payroll tax   form with the IRS. These are the businesses that  we typically think of in our communities. And if   I was opening that auto parts retail business in  Orange County, Florida, I'd want to know something   about the other auto parts businesses that  are already there, to determine is this market   already well being served by the businesses  there or maybe is there room for my business? The data that are published include statistics  from a number of businesses or what we call an   establishment, employment and  payroll. You will notice that   we do not have data in County Business  Patterns on sales, shipments, receipts,   revenue or other measures of output. For  that we'd have to turn to other programs.

But County Business Patterns is still an  amazingly valuable program because it is   very detailed by industry. It  has these three basic statistics.   And it is also one of our most detailed  programs in terms of the geography.   Data are published in County Business Patterns at  the national, state, metropolitan area, county,   congressional district, and even zip code, good  old fashioned US Postal Service zip code levels. The data are also broken up  by other dimensions including   the employment size of the establishment. So  if we wanted to understand how important small   businesses are in this particular industry,  this program would provide that. And even  

information or legal form of organizations.  So how is that business legal organized? These data can be used by  entrepreneurs and business owners,   to help them understand their customers for  B to B type businesses, as well as their   competitors and suppliers for all businesses.  The employment size data can be really useful   to help them understand what is sort of  the perfect or optimal size of my business? As my business grows, is there a size that I ought  to strive to grow to? And that beyond that size   maybe some of the operations of the business start  should be able to taper off. It's not as efficient   to operate. The legal form organization data can  be really useful to help entrepreneurs understand   and plan for which legal form they should  file for with the Internal Revenue Service.

So just to give us an example of some  data, this is looking at information   on automobile parts and accessory  stores at the national level.   So in the nation there are 37,560 automobile  parts and accessories stores that pay their   employees about $9.6 billion worth of annual  payroll and employ about 351,000 workers. So on average, those businesses  pay their employees about $27,345   per year. Of all of those businesses, the  vast majority of them are classified legally,   as a C Corporation. We can see that 23,000 of  the 37,000 establishments are C corporations.   They account for the lion's share  of the payroll and the employment.

However, we can notice that in terms of the  payments of average payroll per employee   it's actually better to work for  a business that's classified as an   other noncorporate legal form of organization,  presently 33 of them in the nation,   but they pay their employees nearly  double what the C corporations do. Looking at the business size data we can  see that small businesses really dominate   in this industry. There's 10,897 businesses  that have fewer than five employees,   a little over 12,000 that  have five to nine employees,   and about 12,142 that have ten to 19 employees,  which is the largest of those categories. So if we had to think about sort of the optimal  size, if I was going to grow my business,   that magic size of ten to 19 employees might  be just about perfect. That size pays their   employees the most in terms of the  number of employees and their annual   payrolls. But again, we see  an interesting finding here.

Those really, really large automobile parts  and accessories stores that have between 100   and 249 employees, there are 29 of them in  the US, I would love to find where that mega   automobile parts store is. It probably is just  a goldmine of information to work on your old   car. They pay their employees on average  about $45,000 a year; so quite a bit more. Now, the second program is non-employer  statistics. You may be wondering non-employers,   what are those? Non-employer businesses are what  we typically think of as self-employed people.   Just like the County Business Patterns  program, non-employer statistics   publish data annually. These are businesses  that file not the payroll tax form but   instead file their business income on  the 1040 Schedule C or schedule SE.

Like the employer data in the County Business  Patterns, we publish information on number of   businesses. We call them firms here. But this  program does actually have information on revenue.   The data publish at similar levels  of geography. We don't go down to   zip code and congressional district in  the non-employer statistics program. And there are some size and legal form  organization type data available here as well.   Now you may be wondering, I wonder how important  these non-employer businesses are in this   industry? And that's a really important question.  If I was opening an auto parts and accessory   store, comparing my business to those other  employer businesses would be really important.

But understanding how many of  those non-employers there might be,   maybe it's - maybe they are significant. So here  are some basic statistics. There's another 39,000   self-employed people. that work - that operate  automobile parts, accessories, and tire stores.   Most of them – 8,000 or so of them, earned  less than $5000 worth of annual revenue. So there a lot of them, actually quite a high  number. I was personally very surprised to see   how high that number was. But these are really,  really tiny businesses. So maybe for opening my   automobile parts and accessory store, I  don't really need to worry about these.

We can see that the vast majority of these  businesses are classified as individual   proprietorships which is not surprising. But  those partnerships are the ones that generate   on average, the highest  sales per business location.   So each of those partnerships generate  about $167,000 worth of revenue where   the proprietorships only generated about  $50,000, so little tiny, tiny businesses. Now you may have noted at the very top of the  slide, that the NAICS code that is shown here,   4413 is only four digits long  instead of the six digit code.  

Non-employer statistics does not publish the  same detailed data by NAICS as the County   Business Patterns does, and this is one of  those examples where we don't see the full   six digit detail. We have to back off to  a four digit or more aggregated industry. Now the third program I want to quickly  talk about, is something called the Annual   Business Statistics. A lot of times I  will get questions from users saying   I am a woman interested in opening an automobile  parts and accessories store. And I'm kind of  

curious to find out how many other women-owned  automobile parts and accessories stores are there;   or how many veteran-owned automobile parts and  accessories stores; or how many minority-owned   automobile parts and accessories stores are there? The key program that provides this information  is the Annual Business Survey or ABS.   This is an annual program that covers employer  businesses, those businesses with paid employees;   it publishes statistics on the number  of businesses, employment payroll,   and it does actually include sales data. The  data are published at the national, state,   county, and even place levels but the key  dimension is they are broken out by race,   ethnicity, gender, and veteran  status of the business owner. So this is where you would want to  go to see how many other women owned   automobile parts and accessories stores  are there. So these data can be really   valuable. To compare the demographics of my  business that I'm thinking about opening,  

the demographic characteristics of the industry  as a whole, to see how I compare to my industry. So this slide provides a brief  snapshot of just some of the   selected statistics available in the  annual business survey for this industry.   Of the 16,625 employer, automobile  parts and accessories stores in the   United States the vast majority of them are  owned by white, non-minority, non-Hispanic   male and non-veteran business owners. We can see  those rows highlighted in yellow on this slide.

However, if you look at some of the key ratios of  these businesses, things like sales per business,   sales per employee, sales  per every dollar of payroll,   so how many dollars of sales do they generate  for every dollar they pay their employees   and average annual payroll per employee,  we see some interesting trends. For example, looking at the race breakouts  we can see that Asian-owned businesses while   there are few of them than White-owned  businesses, they generate higher sales   per employee and provide - and generate  more sales for every dollar of payroll.   However, the White-owned businesses  tend to pay their employees better. Looking at the non-minority versus  minority breakouts we can see that   non-minority businesses dominate but the  minority-owned businesses again, generate   higher average sales per employee and average  higher average sales for every dollar of payroll. And we can see similar sort of breakouts for the  male/female. Again, male businesses dominate but  

female businesses actually do quite well for  themselves. And finally, looking at the veteran   versus non-veteran, non-veteran businesses  dominate, but again veteran-owned businesses   generate higher average sales per employee. So these statistics can be really useful when  working on a business plan or a loan application   and let's say you are a female veteran  and you wanted to be able to show   how many of other female veteran owned businesses  are there. These data can be really useful. Now you may have noticed that the Annual Business  Survey covers employer businesses just like County   Business Patterns. Now you may be thinking that's  really interesting. In my community there are a  

lot of minority and women and veteran-owned tiny,  tiny little businesses, non-employer businesses. ABS covers just the employers. So  where can I go to get data on the race,   ethnicity, gender and veteran status of those  self-employed people? Up until about a year ago   you had nowhere where you could go. The  latest data we had was from a survey that we   conducted in 2012 called the Survey of Business  Owners. That was the latest data available.

ABS came along and is now getting us annual  information through 2018. But we were missing   the data for those self-employed,  those non-employer businesses.   A couple of months ago we fixed that problem and  we added a brand new survey called Non-Employer   Statistics by Demographics, which is going to  be our spotlight survey for today's session. Non-employer statistics publishes similar race,  ethnicity, gender, and veteran status breakouts   as the ABS program publishes. But it  covers those non-employer businesses.   The data are published not quite at the same  level of industry and geographic detail as is   available in the ABS. It's a little bit less,  so you only have national, state, and county.  

And the industry breakouts are only  at the two and three digit levels. So - but at least it does  give you some information   that helps you sort of add the self-employed  people to the employer businesses, to understand   the importance of minority and women-owned  businesses for example, in certain industries. So for example, here is a slide looking at  data on motor vehicle and parts dealers.   Again, you can see the situation  where we are only seeing   a three digit NAICS code, 441 which is a much  broader category than the more detailed six.   But we can see that even in this particular  industry for non-employers, non-veteran White,   non-minority, non-Hispanic, and male owned  non-employer businesses really dominate.

Looking at the ratio of sales  per non-employer business,   we see some interesting patterns there. Now  some of you may have noticed for example,   there are these equally categories. So for  example, at the very bottom of the slide   we see a breakout for a female-owned,  male-owned and then equally male/female.

What that's referring to is a business  that is owned by two or more people,   one is a male and one is a female. That business  would be classified in that particular category   because it is equally male and female owned.  We can see that those types of businesses   maybe a business where a husband and wife own the  business together, they generate more revenue per   firm than their male or female-owned - solely  male or female-owned business counterparts.

So we've talked about four or five programs now -  County Business Patterns, Non-Employer Statistics,   ABS and the NESD Program and you're probably  thinking wow, that's a lot of data there.   The Census have anything else?  Absolutely. We publish a number of   other programs that are disseminated on  that platform that Caleb   talked about, that provides information for this  particular industry that we might want to look at.

The Economic Census for example, produces  basic statistics at the national, state,   metropolitan area, county and place levels. But  they also publish detailed product lines data,   what we call industry by products, North  American Product Classification System. These data can be really valuable to  understand what are the products and   services that automobile parts dealers sell?  We have concentration ratios data that look at   how much the top companies in the industry  make up of the total, as well as a variety   of other size breakouts and there's even more  data than just simply this. And then again,  

we have similar data from the older 2012 Economic  Census and the Survey of Business Owners. Now normally I would have actually done a live  demo for you of our Census Business Builder tool.   For the sense of brevity today, since we're  running a little bit long, I’m just going   to quickly talk about this. But Census Business  Builder is a tool that allows the user to go in   and select a particular type of business and a  location that they are interested in researching. So let's say - I'm sticking with Caleb's example -  we wanted to research opening an automobile parts   and accessory store in Orange County, Florida.  I could go through these six buttons on the   left hand side, see if my automobile parts and  accessory store industry is listed in there. I  

know it is not. So then I can type into the  search box in the bottom left hand coroner,   Automobile Parts, and it would bring up a  list of all of the industries related to that. I could then over on the right hand  side, choose Orange County, Florida.  

And then when I then click on the Go to Map  button, the application would then zoom in   on Orange County, Florida and  it would allow me to browse   about 180 detailed statistics from a variety of  Census Bureau and non-Census Bureau programs. This is a fantastic resource that provides  access to selected statistics from the American   Community Survey, County Business Patterns,  Non-Employer Statistics, the Economic Census,   and a variety of other programs  including our International Trade Data.   We have data from the Bureau of Labor  Statistics, the Department of Agriculture,   etc. There's even some consumer spending  data from ESRI included in this tool. Now this is a great tool that will allow users  to very easily access those statistics. But  

I want to reiterate something that Caleb  mentioned earlier. And that is that while   Census Business Builder gives you a great tool  to allow you to access selective statistics   from these programs, the full data set from the  American Community Survey, all 3,000 or so of   the data variables that the ACS publishes, are  available in the application. So I always tell users start your  research with your - about your business,   using Census Business Builder. But eventually you  will probably have to turn to when   you want to dive down into either more detailed  statistics than what is available in CBB. Now in addition to other - to Census  Business Builder, I want to quickly mention   that we also have a variety of other tools. On the  left hand side it's something called time series   and trend charts. This is a tool that allows you  to access data from our Economic Indicator Survey  

that would allow you to see how is this  industry doing in the last few months? We can see for example, that for NAICS 4413  automobile parts, accessories, and tire stores,   we can see this oscillating  sort of cyclical nature   of the way that this particular industry works  over the different months. We can see in 2020   the more precipitous drop in automobile parts  and accessories stores during the pandemic. But we can then see as we were exiting the  pandemic, the - a real strong rebound in   this particular industry. On the right hand side  is a tool called USA Trade Online. That provides  

information on our imports and exports data that  we publish at the Census Bureau. This is a free   resource available to you. it could be very  valuable to a business owner who is thinking   about opening a business that may someday  want to export the products that they make.

So in summary, the Census Bureau does so much  more than just simply count US population   once every ten years. The data that we publish  can be extremely useful to entrepreneurs and   small business owners, as they research  their markets to start up their business   and even once their business is  running, to help grow their business. Our economy, our communities are constantly  changing and even businesses that do their   research when they first open, need to  periodically go back and redo that research   to make sure that maybe a particular sector,  a particular community that used to be small,   maybe have grown now and might now be a  great market for their particular products. Tools and data programs like the American  Community Survey and those business programs   that I talked about, provide a lot  of this data that could help address   some of the aspects of the  markets that business owners   are going to be reaching out to. And merging  these data across these programs but also merging   Census Bureau data with other programs' data  helps paint a most - a more complete picture. As much as we love Census Bureau  data at the Census Bureau,   we also recognize that merging that data with  data available from third patty data providers,   from trade associations and even from  other federal statistical agencies like   the Bureau of Labor Statistics,  can really be incredibly useful.

Finally, the platform is really  our enterprise dissemination tool. This gives   full access to nearly all of the data that we  have at the Census Bureau. Certainly much more   than what is available in Census Business Builder.  But we really want people to use our CBB data tool   because it provides access to that - those key  statistics in a very user-friendly type platform. So thank you so much for taking time out of  your busy schedule, to attend this webinar.   Here is my contact information and then  the contact information for the American   Community Survey Office. Lynda, let me turn it  back over to you for our final closing remarks.

Lynda Lee: Thank you Andy and Caleb, for  the wonderful presentation of the topic   and the demonstration of how to access the data.   I want to thank everyone for your interest in  our data and for attending today's session.   Before we go, please take note of  the contract information listed here. Included here is also information for  our data dissemination specialists.  

And this is for anyone who may be  interested in a hands on in person training.   We have specialists assigned by geography, that  will be able to provide you with this service. Again, thank you for your interest. And this  concludes today's webinar. Have a great day.

2021-04-24 18:05

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