February Index: 51.67
Previous Month: January 2015
Next Release Date: June 17th, 2015 3:00 PM EST
Fit Small Business – US Small Business Health Index Components
The US Small Business Health Index has a range from 0 – 100. There are 7 components to this score:
- Proprietor’s Income (0 – 20)
- Revenue (0-15)
- Employment (0-20)
- Lending To Small Business (0-10)
- New Business Creation (0-10)
- Bankruptcies (0 -10)
- Future Confidence (0 -10)
A score of 0 would indicate that there has been a major recent negative change in the readings. The maximum score would indicate there has been a major positive change.
Proprietor’s Income – This number is based upon analysis of data included in the Bureau of Economic Analysis’ monthly Personal Income and Outlays report. It measures the income from unincorporated businesses, such as proprietorships, partnerships, and co-operatives.
Revenue – This number is based upon analysis of data from Intuit’s Revenue Index. This monthly index tracks revenue from 100,000 Quickbooks Online users. 15% of these businesses had no employees.
Employment – This number is based upon analysis of data from Intuit’s Employment Index. This monthly index tracks employment at companies with under 20 employees which use Quickbooks Online.
Lending To Small Businesses – This number is based upon analysis of data from the Federal Reserve’s quarterly Survey of Terms of Business Lending. This survey does not track who is doing the borrowing, but the the total $ amount of loans to businesses by loan size . Loans under $1 million were analyzed.
New Business Creation – The number is based upon analysis of data from the Bureau Of Labor Statistics’ monthly Business Employment Dynamics Report. Technically, this report does not track new business creation, but the creation of “establishments” (offices, stores, plants). One business can have multiple establishments. Establishments in which the employment change was 9 employees or less were analyzed.
Bankruptcy – This number is based on analysis of data from the US Courts on business bankruptcy filings. While the data is monthly, the release occurs every 3 months.
Future Confidence – This number is based upon analysis of data from the NFIB’s monthly Small Business Economic Trends survey of its members.
Fit Small Business – US Small Business Health Index Release Schedule 2015
Release Dated – Index Month
June 17th – March 2015, July 22nd – April 2015, August 19th – May 2015, September 16th – June 2015, October 21st – July 2015, November 18th – August 2015, December 16th – September 2015
US Small Business Health Index FAQs:
1) What is the purpose of this endeavor?
Fit Small Business does not think most economic indicators do a good job representing the health of small businesses. The well-known economic indicators say more about how corporate America is performing, than they do about the local pizza place or accountant. We would like to construct an economic index that reflects “Main Street”.
The definition of what constitutes a small business varies greatly. We would like to measure as closely as possible the economic vitality of companies that have under 25 employees. This represents what most Americans imagine when the words “small business” are mentioned.
For more information about the Fit Small Business – US Small Business Health Index, please email Marc Prosser at email@example.com.