PROVIDENCE – On the eve of the COVID-19 pandemic, Rhode Island increased the total number of state small businesses but lost jobs over the prior year, according to the U.S. Small Business Administration’s 2021 state profile.
The latest state profile published on Aug. 30 is based on a number of government economic data sources, all of which predate the pandemic due to analysis and release schedules.
As of March 2020, Rhode Island had gained a net 226 small businesses over the year prior, for a total of 106,412 small businesses statewide, according to the latest SBA profile. While the state increased its share of small businesses, fewer workers were employed by them with a net decline of 233 small-business jobs.
Similar to years past, small businesses continue to dominate the state’s economy, comprising 98.9% of all businesses and employing 52.2% of state workers.
Just under 80% of state small businesses have no employees, while just 2.7% have 20 or more workers.
Professional, scientific and technical service industry companies comprised the largest number of state small business at 14.6%, followed by construction, “other” services, and real estate and rental leasing.
However, in terms of those with the most employees, health care and social assistance companies claimed the No. 1 spot, followed by accommodation and food service industry businesses, and manufacturers.
A majority of small-business owners in the state were non-Hispanic, white and male, according to the latest data from the 2018 Census. Racial minorities comprised 8.1% of business owners and Hispanics, considered an ethnicity, not a race under the census, owned 10.5% of businesses. Women comprised 40.5% of state business owners, while 6.6% were veterans.
Just under 2,000 state businesses exported a combined $2.4 billion in goods from Rhode Island in 2019. A majority, 87.7%, were small businesses under the SBA definition.
In 2019, Federal Deposit Insurance Corp.-insured banks issued $245.6 million in loans to state businesses with $1 million or less in annual revenue.
The SBA defines small businesses as those with fewer than 500 employees. Sources for the 2021 small business profiles include surveys through the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and the Federal Financial Institutions Examination Council.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
