2016 Small Business Credit Survey: Report on Microbusinesses

This report is one in a series based on the findings of the 2016 Small Business Credit Survey (SBCS), a national collaboration of the Community Development Offices of the 12 Federal Reserve Banks. As a supplement to the Report on Employer Firms released in April 2017, this Report on Microbusinesses details findings on the financing experiences and outcomes of the smallest firms in the United States, including the self-employed. Microbusinesses account for about 9 in 10 firms and about 34.9 million jobs in the United States. These firms, therefore, play a vital role in the nation's economy. Furthermore, microbusinesses provide important economic opportunities for both women and minority business owners. Still, relatively little is known about the performance and financing needs of these small businesses. The SBCS gathers timely insight to help address gaps in researchers' and policymakers' understanding of the experiences of this important segment of businesses. This report compares the survey findings for three groups of small firms represented in the SBCS sample: 1.) Non-employers – firms with no employees other than the business owner(s); 2.) Small employers – firms with one to four employees; 3.) Larger employers – firms with 5 to 499 employees; 4.) For purposes of this report, non-employers and small employers are collectively referred to as microbusinesses.