Business Owners Statistically Have More Wealth
Business Owners As High Income Earners And Wealth Holders
Business owners in the 1990’s were more likely than wage earners to be in households classified as high income earners and wealth holders, according to a study released by the Office of Advocacy of the U.S. Small Business Administration.
There is something to the idea that successful business owners can get to wealth faster than folks who follow the Corporate Life. Although just 12% of U.S. households own businesses, they represent 37% of those in the highest decile for income, the Ewing Marion Kauffman Foundation found: their median net worth was $497,000, vs $42,000 for non-business owners.
“Business ownership has traditionally been a route to prosperity for Americans,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “This study confirms that the 1990’s were no different".
The report, How Did Small Business-Owning Households Fare During the Longest U.S. Economic Expansion?, written by Dr. Charles Ou, Economist for the Office of Advocacy, and Dr. George Haynes is a follow-on to the study Wealth and Income: How Did Small Businesses Fare from 1989 to 1998?.
The study finds that in 2001 small business-owning households were more than twice as likely as non-owning households (57.1 percent to 25.5 percent) to be high income, and over eight times more likely (21.2 percent to 2.5 percent) to be high wealth households.
The study also examines the changes in the demographic characteristics of high income and high wealth households over the 1992-2001 period.
The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
For more information, visit the Office of Advocacy website at www.sba.gov/advo.
Entrepreneurs who would like to arrange a no-cost, no-obligation consultation with an ABMI agent/consultant/advisor, to discuss the wealth possibilities of business ownership may phone ABMI at 913-341-6300 or register with this ABMI web site and we will contact you.
The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.