Rise in Self-Employed Challenges the Common Wisdom
By Andrew W. Hait, a survey statistician/economist at the Census Bureau. From the Census Bureau If you think a business is a brick-and-mortar place of work with employees and managers who have benefits and paid time off, think again. The latest data show that more than three-fourths of U.S. businesses may be run out of someone’s home and have zero employees. The rise in the number of self-employed has altered what people believe a business is. Last October, the U.S. Census Bureau released a new report that combines the data published on employer businesses with data on businesses without paid employees, or “Nonemployers.” This report challenges the common wisdom of just what is a business, how important are each of these two types of businesses, and how this definition and importance has changed. How Businesses Have Changed Traditionally, businesses are brick-and-mortar enterprises that have paid employees. They have staff who manage these employees and often provide benef