Most US Businesses Have No Paid Employees

Over 70 percent of America’s 27 million-plus firms have no paid employees, repeat NO paid employees, according to the U.S. Census Bureau.

Typically referred to as “mom-and-pop” businesses, the family-run corner store of the 1950s and ‘60s is quickly being replaced by Internet-based auctions, nail salons and even motorcycle dealerships, according to the Census’ report Non-employer Statistics: 2004 [.pdf].

The report shows that the nation’s approximately 17 million individual proprietorships, 1.3 million corporations and 1.2 million partnerships with no paid employees rack up combined annual receipts of $887 billion.

What types of businesses are these? Among the fastest-growing are: building finishing contractors (22.5 percent), Internet service providers (18.7 percent), nail salons (14.7 percent), electronic shopping and mail-order houses -- including Internet-based consumer trade (12.7 percent), real estate leasing services (9.7 percent), formal wear and costume rental stores (8 percent) and motorcycle dealers (7.4 percent).

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