Using Census Bureau Demographic and Economic...
28
Using Census Bureau Demographic and Economic Data in a Business Plan Kentucky State Data Center Affiliates Meeting August 7, 2015 Presented by: Andrew W. Hait U.S. Census Bureau
Transcript of Using Census Bureau Demographic and Economic...
Using Census Bureau
Demographic and Economic
Data in a Business Plan
Kentucky State Data Center Affiliates Meeting
August 7, 2015
Presented by:
Andrew W. Hait
U.S. Census Bureau
Outline
Using Census Bureau Economic Programs Data To Better Understand
The target market of a proposed business
The local competition
The national industry
2
Sample Scenario:
An entrepreneur is interested in opening a
day care center in Louisville.
She wants to know what information is
available from the Census Bureau that may
help her locate the business and better
understand this industry.
3
Measuring the Need…
The demographic data available from the ACS helps make
the case for this type of business…
4
Getting Started
• What NAICS code covers this industry?
• What Census programs provide data for this industry?
5
What Programs Cover this Industry?
6
How Can I Get to the Data?
7
Tell Me About This Industry in Jefferson
County…
The County Business Patterns
(CBP) program provides data that
she can use to better understand
this industry, her competition, and
her potential market.
8
Child day care services (NAICS 6244) in Louisville Area Counties: 2013
Geographic area name Number of establish-
ments
Paid employees
for pay period
including March 12 (number)
Annual payroll
($1,000)
Annual payroll per employee
($)
Kids Under 5 Years
Kids per Day Care Center
Kentucky 1,073 12,602 175,283 13,909 278,866 260
Bullitt County 15 234 2,199 9,397 4,383 292
Clark County 15 162 2,096 12,938 2,260 151
Floyd County 6 a 141 2,475 413
Harrison County 3 22 263 11,955 1,124 375
Jefferson County 270 3,277 42,688 13,027 48,862 181
Shelby County 9 358 1,490 4,162 2,861 318
Spencer County 3 77 363 4,714 1,022 341
How Is this Industry Performing Nationally?
The Quarterly Services Survey
(QSS) provides National-level data
that she can use to measure
changes in this industry and to
better understand its seasonal
fluctuations.
10
What About Data for My Local Area?
The Economic Census (EC)
provides place-level (and even ZIP
Code-level) data (including
Revenue data not available from
CBP) that she can use to better
understand her potential market and
local competition.
12
Child day care services (NAICS 6244) in Jefferson County Places: 2007
Geographic area name Number of establish-
ments
Revenue ($1,000)
Annual payroll
($1,000)
Number of paid
employees for pay period
including March 12
Jeffersontown city, Kentucky 12 D D c
Louisville/Jefferson County metro government (balance), Kentucky 182 61,848 30,468 2,551
Lyndon city, Kentucky 5 D D b
Middletown city, Kentucky 8 D D c
Prospect city, Kentucky 3 D D b
St. Matthews city, Kentucky 7 3,066 1,695 118
I’ve Heard about Nonemployers…
What are They?
Nonemployers are businesses with no
paid employees.
• Primarily independent contractors
• File IRS Form 1040 Schedule C
• Significant in number
• Significant in revenue in some
industries
14
Nonemployer Child day care services (NAICS 6244) in Louisville Area Counties: 2013
Geographic area name Number of
nonemployer establishments
Receipts ($1,000)
Receipts per establishment ($)
Kentucky 6,276 68,280 10,880
Bullitt County 76 749 9,855
Clark County 56 505 9,018
Floyd County 37 329 8,892
Harrison County 22 153 6,955
Jefferson County 1,098 14,015 12,764
Shelby County 71 769 10,831
Spencer County D D
What Services do Businesses in this
Industry Provide?
Data on products and services
sold by businesses are available
in the Product Lines data from
Economic Census.
• Can be used in a business
plan to identify the primary and
secondary sources of sales of
the business
16
17
Broad and Detailed Product Lines of Child day care services in Kentucky: 2007
Products and
services code
Meaning of Products and services code Number of establish-
ments
Receipts/Revenue ($1,000)
Receipts or revenue of product line as percent of total receipts or
revenue of industry (%)
30000 Industry total 1,108 332,883 100.0
30580 Social assistance services for children, youth, & families 870 243,033 73.0
30586 Social assistance for families - Children/youth service programs 29 2,568 0.8
30587 Social assistance for families - Child day care services 870 232,916 70.0
30589 Social assistance for families - Other 79 7,532 2.3
30600 Social assistance services for the elderly & disabled 7 129 Z
30601 Social assistance for elderly & disabled - Prepared on-site meals 7 129 Z
30630 Food services for the general population 32 874 0.3
30690 Pre-primary grade instructional programs 218 53,140 16.0
39700 All other operating receipts 79 1,435 0.4
39900 Contributions, gifts, & grants - Government 54 21,329 6.4
39910 Contributions, gifts, & grants - Private 29 8,891 2.7
39920 Investment income, including interest & dividends 7 80 Z
39960 All other revenue 35 3,802 1.1
How Big Should A Business Be?
18
The Economic Census includes
data broken out by the sales and
employment size of the business
• Can be used in a business plan
to understand the size of a
“typical” business in an industry
• Can also be used to forecast the
future growth of a business to it’s
most efficient size
19
1,323 2,100
4,783
8,746
15,331 13,698
11,109
4,839
652 219 82
12,230
0
4,000
8,000
12,000
16,000
20,000
Number of child day care establishments in the US: 2007
20
66,846 324,026 365,707 899,668 1,074,334
1,852,921
3,883,562 3,776,650
10,748,754
2,891,242 2,464,962
1,337,235
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Receipts/Revenue of child day care services in the US: 2007 ($1,000)
Anything Else?
21
The Economic Census and the Survey of
Business Owners publish detailed data
that is tailored to specific industries
• Can be used to further understand the
composition of an industry
22
80.7% 74.6% 72.1%
76.0%
19.3% 25.4% 27.9%
24.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Number of establishments Revenue ($1,000) Annual payroll ($1,000) Number of paid employeesfor pay period including
March 12
Taxable and Tax Exempt Day Care Centers in Kentucky - Share of Total
Visualizations?
23
The Industry Statistics Portal also
provides access to visualization of
selected economic data.
• Can be used in business plans
and presentations
Is There an Easier Way to Get All
This Great Information?
25
American FactFinder, the Industry Statistics Portal, and
the other tools shown provide access all of these data,
but can be hard to use…
Enter the Census Business Builder: Small
Business Edition…
Summary
Economic Programs data from the Census Bureau can be an invaluable source of information in a business plan to measure:
The target market of a business
The overall health and composition of the industry and competing businesses
26
Questions
27
