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Small Business Establishment Profiles and Rapid Population Growth in Sunbelt Metropolitan Areas, 1995-2005

This study investigates a linkage between rapid population growth in the Sunbelt's metropolitan areas (MSAs) and characteristics of small-scale businesses. Many Sunbelt MSAs are experiencing relatively rapid employment growth that also fuels population growth, and such linkages could well be related to especially potent employment multiplier effects associated with small firms. Using data from the North American Industry Classification System (NAICS) for 2000, relative concentrations of small-scale establishments in rapidly growing Sunbelt MSAs are described and classified by type. Size of MSA appears to be an important factor in supporting higher- and/or lower-order activities, as proposed by the basic principles of central place theory. In contrast, some of the slowest growing Snowbelt MSAs show a lack of small businesses in key economic sectors, particularly quaternary activities, and their economies continue to be dominated by location-specific industries, such as mining.