U.S. Business Ownership Drops

The share of American families that owns a business dropped significantly between 2010 and 2013, falling to its lowest level since the Federal Reserve first began measuring it in 1989. Between 2010 and 2013 the fraction of U.S. families with business equity declined from 13.3 to 11.7 percent, the Federal Reserve reports (PDF).

The estimates of private business ownership come from the Survey of Consumer Finances (SCF), a periodic effort of the Federal Reserve Board of Governors to gauge the financial situation of U.S. families (defined as financially interdependent members of a household). Administered every three years by NORC, a survey research organization affiliated with the University of Chicago, the SCF queries approximately 6,000 U.S. households on their financial condition. Among the data gathered is information on the ownership of private businesses, which the Fed defines as sole proprietorships, partnerships, S-corporations and non-public C corporations.

U.S. Business Ownership Drops