(November 17, 2004) The economic recovery of small business and its contributions to the economy are outlined in a new federal government report released last week.

The report released by the Office of Advocacy of the U.S. Small Business Administration analyzes 2003 data and examines the role small business plays in the economy.  The report focuses on economic trends and indictors, concentrating on regulatory issues at the federal, state and local levels, innovation and technology transfer, as well as federal government procurement and small business financing data.

Evidence of economic recovery began to appear in mid-2003 as the number of firms grew and the number of bankruptcies declined, according to the report.  Federal contract dollars going to small businesses increased to about $98 billion in the 2003 fiscal year, including both prime contracts and subcontracts.

In the second half of 2003, consumer and business confidence returned and the economy shifted to high gear.  Real gross domestic product increased at an annual rate of 8.2 percent in the fourth quarter, according to the report.

In California, small businesses generate nearly two-thirds of all new jobs. State Employment Development Department data shows that approximately 96 percent of all businesses in the state are small businesses, and most of these (79 percent) have fewer than 10 employees. 

The California Chamber of Commerce supports legislative and regulatory actions that remove barriers to small business success. A number of positive changes can help California small businesses. These include reducing/eliminating paperwork and red-tape bureaucracy wherever and whenever possible and seriously considering small business exemptions when new laws are proposed.

For more information on small business issues or Chamber positions, please visit our website at www.calchamber.com.