The number of small businesses in California is growing, but the number of self-employed is growing even faster, says a new report from the U.S. Small Business Administration Office of Advocacy.

Each year, the office updates its profile of the states and U.S. territories, using government statistics from 2002, 2003 or 2004, depending on the source.

The new report shows California with 3.3 million businesses in 2004. A third of them have employees – a total of 1.07 million employer businesses, 1.3 percent more than in 2003. The self-employed category grew faster, a 7.6 percent increase, to a total of 2.14 million. (The report also counts another 115,000 "non-employer businesses.")

The report found a 1.9 percent increase in the number of businesses that closed permanently in 2004, but a 16.7 percent drop in the number of business bankruptcies.

Also, companies with fewer than 20 employees added 117,000 jobs from 2001 to 2002, the latest numbers available. In contrast, companies with more than 500 employees eliminated 264,000 jobs during that period. Overall, the state lost 252,000 jobs that year.

The incomes of owners of non-farm small businesses increased 6 percent to $137.5 billion in 2003, the latest statistics available. This statistic gives only a partial indication of small businesses' financial performance, the Office of Advocacy says, because it does not include profits that are put back into the companies for growth.

To view the entire California profile or statistics for other states, go online to www.sba.gov/advo/research /profiles.

Average paychecks decline at small firms

This year has been tough on California small businesses, reports SurePayroll, a national payroll service based in Chicago.

The number of employees in small businesses statewide has increased 0.3 percent through July, compared to 8.4 percent growth in all of 2004. And the average paycheck from these firms has decreased 2.8 percent through July, compared to a 9.2 percent decline last year.

Nationally, the number of employees in small businesses has risen 0.4 percent and the average paycheck has dropped 1.8 percent. SurePayroll bases its data on its 15,000 small-business clients.

Top diverse-owner businesses sought

Web site DiversityBusiness is looking for the top 500 U.S. women- and minority-owned small businesses, based on revenues. To participate, business owners must register and fill out a survey at www.diversitybusiness .com/registration by Sept. 15. The top 500 "diversity owned" small businesses in the United States, top 50 small businesses and top 50 "diversity owned" small businesses for each state will be announced in September and honored at the sixth annual Multi cultural Business Conference in March 2006.

DiversityBusiness is an Internet portal for 30,000 women- and minority-owned firms that sell their goods and services to Fortune 1,000 companies.

DEPARTMENT OF CONSERVATION SEEKS PROPOSALS FOR $10 MILLION IN RECYCLING MARKET DEVELOPMENT GRANTS

SACRAMENTO - The state Department of Conservation is accepting funding proposals for its Beverage Container Recycling Market Development and Expansion Grant Program.
A total of $10 million is available for fiscal year 2005/06 as part of an ongoing statewide effort to encourage innovative approaches to the recovery and re-use of recyclable bottles and cans.
The overall goal of the $10 million Beverage Container Recycling Market Development and Expansion Grant Program is to increase the recycling rate of California Refund Value (CRV) beverage containers. The grants also aim to stimulate job creation in the state.
Businesses, non-profits, cities, counties, joint powers authorities, universities, tribes, and state or federal government entities have been invited by the Department of Conservation to submit concept papers by October 14, 2005.
The Department will be looking for grant projects that create new and expanded end-uses for aluminum, glass and plastic beverage containers, and improve supplies and quality of recycled feedstock for use in manufacturing. Recycling market development and expansion-related proposals may address, but are not limited to:

Research and development of collecting, sorting, processing, cleaning, or otherwise upgrading the market value of recycled beverage containers;

Identification, development, and expansion of markets for recycled beverage containers;

Research and development for products manufactured using recycled beverage containers; and

Payments to California manufacturers who recycle beverage containers that are marked by resin type identification codes "3," "4," "5," "6," or "7."

Recycling Market Development & Expansion Grants The first grant allocation in February 2004 included funding for 15 projects, followed by eight projects in March 2005. The Department is initiating a third grant cycle by soliciting proposals from a wide array of organizations, including private businesses, manufacturers, trade associations, environmental groups, and community organizations. Both for profit and nonprofit organizations are eligible to apply.
Funding for the grants was authorized by the passage of Assembly Bill 28 (Chapter 753, Statutes of 2003). The provisions of this law authorize the Department to issue up to $10 million annually until January 1, 2007. The grants are funded by unredeemed deposits on California Refund Value bottles and cans, at no cost to the state's General Fund.
For additional information on the Beverage Container Recycling Market Development and Expansion Grant Program, or to request an application, go to www.conservation.ca.gov/DOR and click on "grants" in the Quick Hits section.

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