Rachel Allen

Sources: California Employment Development Department, www.calmis.ca.gov, U.S. Census Bureau, http://tier2.census.gov

How Are We Doing?

More than half of the businesses in the Klamath-Siskiyou region have 0-4 employees in California, or 1-4 employees in Oregon. Self-employment is defined as being a "Sole proprietor, independent contractor, a member of a partnership, or are otherwise in business for yourself." From 1994 to 1997, the percentage of small businesses has stayed fairly the same but is predicted to go down as new technology and per-capita wealth increases.

Why is it important?

The number of very small enterprises is generally a positive indicator of human and constructed capital, and may also contribute to social capital. Small businesses keep money and business in the local economy, they bring diversity and pride to a community and can create a business with goods and services to meet the specific needs of the community. When business owners and consumers feel proud to buy and sell locally, individuals and communities feel empowered to continue self-reliance.

Self-employed business owners can contribute negatively to social and human capital. Not only do they not employ very many people, running a small business can be extremely time consuming. This results in a lack of time spent with children and spouses.