MicrobusinessNearly one-third of micro-business owners must rely on a second job as their main source of annual income, according to a new quarterly tracking poll by Sams’ Club/Gallup.

Almost nine out of 10 businesses in the United States can be identified as micro-businesses. These ventures generally have fewer than five employees and initial capital outlays of less than $35,000.

In contrast, small businesses generally have fewer than 500 employees.

A majority of micro-business owners interviewed for this poll were “non-employers” who had no employees other than themselves.

The newer the micro-business, the more likely a second income was considered essential.

According to the tracking poll, about 54 percent of first-year micro-business owners earned most of their annual income in a second job. Only 38 percent cited their micro-business as the bread winner.

For 11 to 20 year old businesses, the numbers changed significantly with 61 percent saying they were supported mainly by business income. Only 29 percent of 11 to 20 year old businesses had owners who still relied on a second job as their main source of income.

After 20 years in business, only 19 percent said they still needed that second job.

Low revenue during the startup years was the main reason micro-business owners relied on a second income and hired so few employees.

About 53 percent who reported business revenues of less than $50,000 in 2013 said they depended on a second job for most of their income. That compared with 15 percent whose businesses earned $50,000 or more who had second jobs.

Taxes, business regulations and hiring generally were secondary concerns, compared to having a cash flow, according to the tracking poll. For instance, about 67 percent of owners whose main income was from their business said taxes were a major issue. But only 52 percent cited taxes as an issue if their main income was from a second job.

Some people might not realize they are micro-business owners, according to the U.S. Small Business Administration. For example, consultants, artists and freelancers who work out of their homes can be identified as having micro-businesses.

Many also don’t realize they need permits, licenses and tax guidance to operate their businesses. The SBA has programs, including loans and micro-loans that can help. For information, visit www.sba.gov.

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