82 FR 49175 - Annual Business Survey

DEPARTMENT OF COMMERCE
Bureau of the Census

Federal Register Volume 82, Issue 204 (October 24, 2017)

Notice is hereby given that the Bureau of the Census (Census Bureau) is considering a proposal to conduct an Annual Business Survey (ABS). Based on information and recommendations received by the Census Bureau, we understand that the data have significant application to the needs of other government agencies and the public. The ABS will provide the only comprehensive data on business owner demographics and business characteristics, including financing, research and development (for microbusinesses), and innovation. These data are not publicly available from nongovernment or other governmental sources.

[Federal Register Volume 82, Number 204 (Tuesday, October 24, 2017)]
[Notices]
[Pages 49175-49176]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23041]


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DEPARTMENT OF COMMERCE

Bureau of the Census

[Docket Number 170912889-7889-01]


Annual Business Survey

AGENCY: Bureau of the Census, Department of Commerce.

ACTION: Notice of consideration and request for comments.

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SUMMARY: Notice is hereby given that the Bureau of the Census (Census 
Bureau) is considering a proposal to conduct an Annual Business Survey 
(ABS). Based on information and recommendations received by the Census 
Bureau, we understand that the data have significant application to the 
needs of other government agencies and the public. The ABS will provide 
the only comprehensive data on business owner demographics and business 
characteristics, including financing, research and development (for 
microbusinesses), and innovation. These data are not publicly available 
from nongovernment or other governmental sources.

DATES: Written comments on this notice must be submitted on or before 
November 24, 2017.

ADDRESSES: Please direct all written comments to Aneta Erdie, U.S. 
Census Bureau, Economic Reimbursable Surveys Division (ERD), 6H139, 
Washington, DC 20233-6600, (301) 763-4841, [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the information collection instrument(s) and instructions 
should be directed to Patrice Norman, U.S. Census Bureau, ERD, 8K151, 
Washington, DC 20233-6600, (301) 763-7198, [email protected].

SUPPLEMENTARY INFORMATION: The Census Bureau, with support from the 
National Science Foundation (NSF), is considering a plan to conduct an 
ABS for the 2017-2021 survey years. The Proposed ABS will be conducted 
under the authority of Title 13, United States Code, Sections 8(b), 
131, and 182; and Title 42, United States Code, Sections 1861-76 
(National Science Foundation Act of 1950, as amended). The ABS is a new 
survey designed to combine Census Bureau firm-level collections to 
reduce respondent burden, increase data quality, reduce operational 
costs, and operate more efficiently. The ABS replaces the five-year 
Survey of Business Owners (SBO) for employer businesses, the Annual 
Survey of Entrepreneurs (ASE), and the Business Research and 
Development (R&D) and Innovation for Microbusinesses (BRDI-M) surveys. 
The SBO has been conducted as part of the economic census every five 
years since 1972 to collect selected economic and demographic 
characteristics for businesses and business owners by gender, 
ethnicity, race, and veteran status for both employer and nonemployer 
businesses. The ASE was conducted for three reference years (2014, 
2015, and 2016) as a supplement to the SBO to provide more frequent 
data on economic and demographic characteristics for businesses and 
business owners by gender, ethnicity, race, and veteran status for 
employer businesses. The BRDI-M survey was first fielded in 2016 as an 
expansion to the Business R&D and Innovation Survey (BRDI-S) to measure 
firm innovation and investigate the incidence of R&D activities in 
growing sectors, such as small business enterprises not covered by 
BRDI-S.
    Government program officials, industry organization leaders, 
economic and social analysts, business entrepreneurs, and domestic and 
foreign researchers in academia, business, and government will use 
statistics from the new ABS. Estimates produced on owner demographic 
data may be used to assess business assistance needs in order to 
allocate available program resources, and to create a framework for 
planning, directing, and assessing programs that promote the activities 
of disadvantaged groups. Estimates also may be used to assess minority-
owned businesses by industry and area; to educate industry 
associations, corporations, and government entities; to analyze 
business operations in comparison to similar firms; to compute market 
share; and, to assess business growth and future prospects. Estimates 
produced on R&D and innovation may be used to compare R&D costs across 
industries, determine where R&D activity is conducted geographically, 
and identify the types of businesses with R&D. Estimates may be used to 
contribute to the Bureau of Economic Analysis (BEA) system of national 
accounts; to increase investments in research and development; to 
strengthen education and encourage entrepreneurship; and to

[[Page 49176]]

compare business innovation in the United States to that of other 
countries.
    The ABS would cover all domestic, nonfarm employer businesses with 
operations during the survey year. Nonemployer businesses would not be 
within the scope of the ABS. The Census Bureau will submit a separate 
request for approval to collect business and owner characteristics from 
nonemployer businesses if it is determined that a collection is needed 
to produce those estimates.
    The ABS would collect the following information from employer 
businesses:

--Owner characteristics, including the gender, ethnicity, race, and 
veteran status of the principal owner(s) from all firms in the sample;
--Various business characteristics, including financing, from all firms 
in the sample;
--Research and development activity and costs from firms with less than 
10 employees; and
--Innovation practices from all firms in the sample.

    Additional owner topics include military service, owner 
acquisition, job functions, number of hours worked, primary income, 
prior business ownership, age of owner, education and field of degree, 
citizenship and place of birth, and reason for owning the business. 
Other business topics include number of owners and percent ownership, 
family owned and operated, business aspirations, funding sources, 
profitability, types of customers, types of workers, employee benefits, 
home operation, Web site use, and business activity. Starting with the 
2018 survey, the ABS may include new module questions each year based 
on relevant business topics. Potential topics include technological 
advances, Internet usage, management and business practices, exporting 
practices, and globalization.
    The draft content for the ABS will be cognitively tested with 
approximately 20 businesses. The questionnaire and interview protocol 
will be used to assess the feasibility and merit of suggested changes 
that arise from the testing.
    The 2017 ABS will sample approximately 850,000 employer businesses 
to produce statistics that are more detailed. Annually from 2018-2021, 
the survey sample will be reduced to approximately 300,000 businesses 
to reduce respondent burden. Businesses which reported business 
activity on Internal Revenue Service tax forms 941, ``Employer's 
Quarterly Federal Tax Return;'' 944, ``Employer's Annual Federal Tax 
Return;'' or any one of the 1120 corporate tax forms will be eligible 
for selection.
    The ABS will be collected using only electronic instruments. 
Respondents will receive a letter notifying them of their requirement 
to respond and how to access the survey. Responses will be due 
approximately 30 days from receipt. Select businesses will receive a 
due date reminder via a letter prior to the due date. Additionally, two 
mail follow-ups to nonrespondents will be conducted at approximately 
one-month intervals. Select nonrespondents will receive a certified 
mailing for the second follow-up if needed.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA) unless that collection of 
information displays a currently valid Office of Management and Budget 
(OMB) control number. In accordance with the PRA, 44 U.S.C., Chapter 
45, the Census Bureau will submit a request for approval to the OMB for 
approval of the ABS. The Census Bureau previously published a notice in 
the Federal Register on August 7, 2017 (82 FR 36728) informing the 
public of this planned submission and inviting public comment.

    Dated: October 18, 2017.
Ron S. Jarmin,
Associate Director for Economic Programs, Performing the Non-Exclusive 
Functions and Duties of the Director Bureau of the Census.
[FR Doc. 2017-23041 Filed 10-23-17; 8:45 am]
 BILLING CODE 3510-07-P