NEW YORK—The Federal Reserve Banks of New York, Cleveland, and Richmond will issue the 2017 Small Business Credit Survey: Report on Nonemployer Firms at 10:30 AM EST on Wednesday, December 12. This report examines the business conditions and the credit environment of nonemployer firms—small businesses with no employees other than the business’s owners. Nonemployer firms can include gig workers, startups that are planning to hire employees, and mature businesses that rely on contract workers as their workforce, among others.
Although nonemployer firms make up about 80% of all small businesses and employ 17% of the American workforce, little is known about their financing experiences. This report addresses this knowledge gap by providing a deeper understanding of the unique characteristics of nonemployer firms and the challenges they face.
A key feature of this report is a deep-dive into five different categories of nonemployer firms based on the nature of their work. This includes “supplemental work” where the business is not the owner’s primary source of income, as well as contract work.
Betsy Bourassa, New York Fed
Laura Fortunato, Richmond Fed
June Gates, Cleveland Fed