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Measuring the Dynamics of Young and Small Businesses: Integrating the Employer and Nonemployer Universes

February 2006

Abstract

We develop a preliminary version of an Integrated Longitudinal Business Database (ILBD) that combines administrative records and survey-based data for virtually all employer and nonemployer business units in the United States. In the process, we confront conceptual and practical issues that arise in measuring the importance and dynamic behavior of younger and smaller businesses. We also document some basic facts about younger and smaller businesses. In doing so, we exploit the ability of the ILBD to follow business transitions between employer and nonemployer status, and vice-versa. This aspect of the ILBD opens a new frontier for the study of business formation and the precursors to job creation in the U.S. economy.

Document Tags and Keywords

Keywords Keywords are automatically generated using KeyBERT, a powerful and innovative keyword extraction tool that utilizes BERT embeddings to ensure high-quality and contextually relevant keywords.

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enterprise, industrial, proprietorship, entrepreneur, labor, proprietor, revenue, migration, migrant, nonemployer businesses

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Characteristics of Business Owners, Internal Revenue Service, Standard Industrial Classification, National Bureau of Economic Research, Company Organization Survey, University of Chicago, Longitudinal Business Database, Employer Identification Numbers, Economic Census, North American Industry Classification System, Social Security Number, Longitudinal Employer Household Dynamics, Kauffman Foundation, Integrated Longitudinal Business Database, Survey of Business Owners

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