Small Businesses are a critical part of each and every community across America. They are the Store Fronts and Services that we visit, we tell our friends about and that we support. It’s where we go to find a gift for a special someone. Or pick out the flowers for a wedding. Could be a visit to a tax accountant or a butcher. Regardless of the reason, these are the businesses that keep communities vibrant and growing. These businesses are not just the prototypical definition of small businesses. They are a subset. They are the backbone of our communities – across the U.S. The leaders within our Chambers of Commerce. Our friends, our neighbors.
This subsection of small business has made a strong recovery in the wake of the financial crisis. CAN Capital, one of the leading alternative providers of capital to small business, and PYMNTS.com will measure the state of Store Front Businesses quarterly to assess just how well the 3.4 million business establishments that fit that description are doing. The CAN Capital Store Front Business Index powered by PYMNTS.com, not only measures the vibrancy of these businesses quarterly but the local economies in which they operate.
WHAT IS A STORE FRONT BUSINESS?
The 3.4 million Store Front Businesses that are analyzed in this Index represent 36.7 % of small business establishments and 27.6% of employees in the U.S.
“Store Front” businesses are defined as those who drive the local economies of the cities and towns in the U.S. and consist of businesses in 8 segments that typify the local small business enterprise:
- Building Contractors/Remodelers
- Eating and Drinking Places
- Personal Services
- Professional Services
- Health Care
THE STATE OF STORE FRONT BUSINESSES | Q2 2015
- The Index shows strong, healthy results and outperforms real GDP with a projected growth rate in Q2 2015 of 2.9%
- Categorizing by industry, the Building Contractors and Home Remodelers segment was the leader in 2014 and is projected to continue its strong recovery with a healthy growth rate of 3.9% in 2015, after declining 21% between 2007-2010
- The Fitness segment is projected to show the strongest results through Q2 2015, with a projected 5.5% growth.
- The Store Front Business Index covers the three drivers of businesses: growth in the number of establishments, employees and total wages.
- Measurements of the Store Front Business Index were done in real terms and are based on the growth in new establishments, real wages and employment.
- The Index is a collaboration between PYMNTS (model, methodology and analytics) and CAN Capital provided insights into business performance from their more than 17 years of extending credit to these types of business.