[Federal Register Volume 81, Number 239 (Tuesday, December 13, 2016)]
[Notices]
[Pages 89892-89895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29866]


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DEPARTMENT OF COMMERCE

U.S. Census Bureau


Proposed Information Collection; Comment Request; Annual Survey 
of Entrepreneurs

AGENCY: U.S. Census Bureau, Commerce.

ACTION: Notice.

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SUMMARY: The Department of Commerce, as part of its continuing effort 
to reduce paperwork and respondent burden, invites the general public 
and other Federal agencies to take this opportunity to comment on 
proposed and/or continuing information collections, as required by the 
Paperwork Reduction Act of 1995.

DATES: To ensure consideration, written comments must be submitted on 
or before February 13, 2017.

ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental 
Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th 
and Constitution Avenue NW., Washington, DC 20230 (or via the Internet 
at [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, EWD, 8K151, 
Washington, DC 20233-6600, (301) 763-7198, [email protected].

SUPPLEMENTARY INFORMATION:

I. Abstract

    The Census Bureau is conducting the 2016 Annual Survey of 
Entrepreneurs (ASE). The ASE asks respondents of employer firms about 
the owner(s) and business characteristics, including questions on the 
gender, ethnicity, race, and veteran status of the principal owner(s). 
The 2016 ASE is conducted as a continuation of an annual collection of 
information on the characteristics of U.S. businesses and owners by 
gender, ethnicity, race, and veteran status. The survey is conducted 
jointly with the Ewing Marion Kauffman Foundation, a Missouri nonprofit 
corporation and a private foundation exempt from taxes under Section 
501(c)(3) of the Internal Revenue Code, and the Minority Business 
Development Agency (MBDA) for reference years 2014, 2015 and 2016. The 
ASE supplements the five-year Survey of Business Owners (SBO) program 
and provides more timely updates on the status, nature, and scope of 
women-, minority-, and veteran-owned businesses. The ASE statistics are 
used by government program officials, industry organization leaders, 
economic and social analysts, and business entrepreneurs. Examples of 
data uses include:
     To assess business assistance needs and allocate available 
program resources
     To establish and evaluate contract procurement practices 
affecting small and disadvantaged businesses
     To create a framework for planning, directing, and 
assessing programs that promote the activities of disadvantaged groups
     To assess minority-owned businesses by industry and area 
and to educate industry associations, corporations, and government 
entities
     To analyze economic and demographic shifts and differences 
in ownership and performance among geographic areas
     To analyze business operations in comparison to similar 
firms, compute market share, and assess business growth and future 
prospects
    The ASE consists of questions from the 2012 SBO (form SBO-1) with 
additional questions about sources of capital and financial barriers 
that are asked each survey year. The ASE is designed to ask a series of 
new questions each survey year based on a relevant business topic 
determined prior to data collection. Each year the new

[[Page 89893]]

module of questions is submitted to the Office of Management and Budget 
(OMB) for approval. The module selected for the 2016 ASE focuses on 
business advice and planning. The 2016 ASE also includes additional 
questions on business financing relationships, owner demographics, and 
regulations. The Census Bureau is requesting approval to field the 2016 
ASE in July 2017. The following module and additional questions will be 
added for the 2016 ASE:

[cir] Number of Businesses Previously Owned--Prior to establishing, 
purchasing, or acquiring this business, how many previous businesses 
has Owner 1 owned? (Include self-employed businesses.)
    [squ] 0
    [squ] 1
    [squ] 2
    [squ] 3
    [squ] 4
    [squ] 5 or more

[cir] Field of Highest Degree--Prior to establishing, purchasing, or 
acquiring this business, what was the field of the highest degree 
completed for Owner 1? Select all that apply.
    [squ] Natural and Physical Sciences
    [squ] Law or Legal Studies
    [squ] Information Technology or Computer Science
    [squ] Mathematics, Economics, or Statistics
    [squ] Engineering and Related Technologies
    [squ] Architecture and Building
    [squ] Business or Finance
    [squ] Education
    [squ] Health, Medicine, or Pharmacy
    [squ] Social Sciences
    [squ] Humanities or Arts
    [squ] Agriculture, Environmental and Related
    [squ] Food, Hospitality, or Personal Services
    [squ] Other (Specify)
    [squ] No Bachelor's, Master's, Doctorate, or Professional Degree

[cir] Business Banking Relationships--In 2016, were this business's 
banking relationships with the same financial institutions as any of 
the owners' personal banking relationships? Banking relationships 
include business checking or savings accounts, credit cards, loans, 
etc. Select one box only.
    [squ] All of the banking relationships were the same
    [squ] Some of the banking relationships were the same
    [squ] None of the banking relationships were the same--Skip to 
Outstanding Loans
    [squ] The owners had no business banking relationships--Skip to 
Outstanding Loans

[cir] Banking Relationship Duration--How long were the owners' 
personal banking relationships in place before financial 
transactions were first conducted by this business? Select one box 
only.
    [squ] 0-1 month
    [squ] 2-5 months
    [squ] 6-12 months
    [squ] More than 12 months

[cir] Outstanding Loans--In 2016, was this business required to 
provide collateral or loan guarantee for any outstanding loan the 
business obtained? Select one box only.
    [squ] Business did not have an outstanding loan
    [squ] Yes
    [squ] No
    [squ] Do not know

[cir] Purchases on Account--In 2016, did this business make any 
purchases on account or using trade credits? Trade credits are 
invoice payment terms a business establishes with their suppliers 
allowing them to purchase goods or services now and at a later date.
    [squ] Yes
    [squ] No
[cir] Negative Impact on Profitability--For 2016, did each of the 
following negatively impact the profitability of this business? 
Select one box in each row.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
                                               Yes                   No
Access to financial capital...               [squ]                [squ]
Cost of financial capital.....               [squ]                [squ]
Finding qualified labor.......               [squ]                [squ]
Taxes.........................               [squ]                [squ]
Government regulations                       [squ]                [squ]
 (federal, state and/or local)
Slow business or lost sales...               [squ]                [squ]
Customers or clients not                     [squ]                [squ]
 making payments or paying
 late.........................
The unpredictability of                      [squ]                [squ]
 business conditions..........
Changes or updates in                        [squ]                [squ]
 technology...................
Other (Specify)...............               [squ]                [squ]
------------------------------------------------------------------------

    [cir] Impact on Regulations--For 2016, which impact did each of 
the following government regulations have on the business 
profitability? Select one box in each row.

----------------------------------------------------------------------------------------------------------------
                                            Very        Somewhat                    Somewhat        Very      N/
                                          negative      negative       Neutral      positive      positive     A
----------------------------------------------------------------------------------------------------------------
Employee hiring.......................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Workers' compensation.................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Occupational health and safety........        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Health insurance......................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Employment records....................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Business and professional licensing...        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Building and renovation permits.......        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Business registration.................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Health permits and inspections........        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Environmental.........................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Trade.................................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Financial regulations.................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
Other (Specify).......................        [squ]         [squ]         [squ]         [squ]         [squ]   [s
                                                                                                              qu
                                                                                                              ]
----------------------------------------------------------------------------------------------------------------

[cir] Regulations and Starting or Acquiring the Business--What 
impact did regulations have on the ability to initially start or 
acquire this business?
    [squ] Positive impact
    [squ] Negative impact
    [squ] No impact
    [squ] Do not know

[cir] Regulations and Growth of the Business--During 2016, what 
impact did regulations have on expanding the business operations, 
such as by

[[Page 89894]]

increasing production, adding locations, or attaining new customers?
    [squ] Positive impact
    [squ] Negative impact
    [squ] No impact
    [squ] Business did not plan to expand operations
    [squ] Do not know

[cir] Reasons for Seeking Business Advice--During 2016, what was 
this business's primary reason for seeking paid or unpaid business 
advice or mentoring from others? Select all that apply.
    [squ] Business finances
    [squ] Employee relations (for example, hiring, workforce 
retention, employee performance/growth, employee separation)
    [squ] Management and day-to-day operations
    [squ] Product development and innovation
    [squ] Investment and access to capital
    [squ] Succession planning and exit strategy
    [squ] Increasing sales
    [squ] Reducing costs
    [squ] Taxes and accounting
    [squ] Regulatory compliance
    [squ] Technology/Information Technology
    [squ] Key performance indicators and business targets
    [squ] Copyrights, trademarks, and patents
    [squ] Did not seek advice/mentoring--Skip to Exit Strategy

[cir] Providers of Business Advice--During 2016, from whom did this 
business seek the advice or mentoring selected in the `Reasons for 
Seeking Business Advice' question? Select all that apply.
    [squ] Family (Family refers to spouses, unmarried partners, 
parents/guardians, children, siblings, or close relatives.)
    [squ] Friends
    [squ] Professional colleagues
    [squ] Employees
    [squ] Professional consultants
    [squ] Customers
    [squ] Suppliers

    [squ] Government-supported technical assistance programs (for 
example, Small Business Administration (SBA), Small Business 
Development Center, Women's Business Center, or Minority Business 
Development Agency (MBDA) Business Center)
    [squ] Other (Specify)

[cir] Outcome of Advice or Mentoring--During 2016, did the advice or 
mentoring selected in the `Reasons for Seeking Business Advice' 
question lead to positive business outcomes or changes in business 
operations that are anticipated to be positive? delete quotes
    [squ] Yes
    [squ] No
[cir] Exit Strategy--Which of the following best describes this 
business's current exit strategy for any of the owners? An exit 
strategy is a plan the business owners create to describe how they 
intend to exit the business and capture their investment. Select all 
that apply.
    [squ] Walk away from the business
    [squ] Liquidate or sell off assets and repay the business's 
liabilities
    [squ] Sell the business to employees or managers (for example, 
offer an Employee Stock Ownership Program (ESOP), management buyout, 
or employee buyout)
    [squ] Sell or merge the business with another firm
    [squ] Sell the business to another individual that is not an 
owner of the same business
    [squ] Sell or transfer ownership to another owner of the same 
business
    [squ] Sell or transfer ownership of the business to a family 
member(s) that is not an owner of the same business
    [squ] Prepare an Initial Public Offering (IPO)
    [squ] Other (Specify)
    [squ] Business does not currently have an exit strategy

    The module selected for the 2014 ASE focused on business innovation 
and research and development (R&D) activity. The goal of the 2014 
module was to identify new forms of innovation, identify 
characteristics of businesses that are innovators, and measure R&D 
activity conducted by entrepreneurs. The questions selected asked about 
process and product innovation, R&D costs, R&D funding, R&D purchases, 
and R&D employees. The questions were based on the Microbusiness 
Innovation Science and Technology Survey (MIST) conducted by the 
National Science Foundation's (NSF) National Center for Science and 
Engineering Statistics (NCSES). The 2014 ASE module was approved by OMB 
on September 4, 2015, and fielded in September 2015. Results from the 
2014 ASE were published in September 2016.
    The module selected for the 2015 ASE focused on business management 
practices. The goal of the 2015 module was to measure how management 
practices impact productivity and growth. The questions selected asked 
about the use of targets and key performance indicators, record-
keeping, and personnel practices. Some questions on the 2015 ASE module 
were based on the Management and Organizational Practices Survey (MOPS) 
conducted by the Census Bureau. The 2015 ASE module was approved by OMB 
on June 1, 2016, and fielded in July 2016. Results from the 2015 ASE 
are tentatively scheduled to be published in July 2017.
    Businesses which reported business activity on any one of the 
following Internal Revenue Service tax forms are eligible for 
selection: 1040 (Schedule C), ``Profit or Loss from Business (Sole 
Proprietorship); 1065, ``U.S. Return of Partnership Income''; 941, 
``Employer's Quarterly Federal Tax Return''; 944, ``Employer's Annual 
Federal Tax Return''; or any one of the 1120 corporate tax forms. The 
ASE only requests responses from businesses filing the 941, 944, or 
1120 tax forms. Estimates for businesses filing the 1040 or 1065 tax 
returns are created using statistical modeling of administrative data 
and will only provide data by race, gender, ethnicity, and veteran 
status by geography, industry, and size of firm.
    For the 2016 ASE, cognitive interviews were conducted under 
separate clearance with 15 to 20 businesses in two rounds. Round one 
interviews were conducted in October 2016, followed by round two in 
December 2016. The questionnaire and the interview protocol were 
updated for each round to reflect changes based on testing feedback. 
The 2016 ASE data collection period is planned for July 2017 through 
December 2017. Results of the 2016 ASE are tentatively scheduled to be 
published in July 2018.
    In preparation for the 2017 SBO, the 2016 ASE will include a set of 
questions to test new content for a small subset of respondents. 
Approximately 2,900 respondents (one percent of the survey sample) will 
follow an alternate path of questions as a test for the 2017 SBO. The 
majority of respondents will follow the traditional survey path (the 
base ASE questions plus the module). The test respondents will also 
follow the traditional survey path and module, with the addition of six 
questions on ownership (noted below). The test path will provide more 
comprehensive information as input into the 2017 SBO content 
development. This method of testing will offer a much larger pool of 
respondents than cognitive testing alone would allow. The test path 
questions include:

[cir] Ownership or Operation--In 2016, was this business owned or 
operated by spouses or unmarried partners?
    [squ] Yes
    [squ] No (skip to Family Ownership)

[cir] Joint Ownership--In 2016, was this business jointly owned by 
spouses or unmarried partners?
    [squ] Yes
    [squ] No

[cir] Equal Operation--In 2016, was this business equally operated 
by spouses or unmarried partners?
    [squ] Yes
    [squ] No, primarily operated by Owner 1 (autofill)
    [squ] No, primarily operated by Owner 2 (autofill)

[cir] Family Ownership--In 2016, did two or more members of one 
family own more than 50% of this business? (Family refers to 
spouses, unmarried partners, parents/guardians, children, siblings 
or close relatives.)
    [squ] Yes
    [squ] No

[cir] Number of Owners--In 2016, how many people owned this 
business?
    [ssquf] Do not combine two or more owners to create one owner.

[[Page 89895]]

    [ssquf] Count spouses and partners as separate owners.
    [squ] 1 person
    [squ] 2 people
    [squ] 3 people
    [squ] 4 people
    [squ] 5-10 people
    [squ] 11 or more people
    [squ] Business is owned only by a parent company, estate, trust, 
or entity
    [squ] Business is owned by a combination of individuals and 
parent companies, estates, trusts, or entities

[cir] 10% or More Ownership--In 2016, did at least one person own 
10% or more of this business? (Do not count parent companies, 
estates, trusts or other entities).
    [squ] Yes
    [squ] No--Select ``No'' ONLY if no person owned 10% or more of 
this business

II. Method of Collection

    The Census Bureau uses a letter-only mail out with an electronic-
only data collection for the ASE. The mail out will be conducted from 
the National Processing Center in Jeffersonville, Indiana. Two mail 
follow-ups to nonrespondents will be conducted at approximately one-
month intervals. The second follow-up of the 2014 ASE included a 
certified mailing for all nonrespondents. The 2015 ASE included a 
certified mailing for only a selected group of nonrespondents based on 
their sampling frame; the other nonrespondents received a standard 
first-class follow-up mailing. The 2016 ASE collection strategy will be 
similar to the 2015 ASE. Select nonrespondents will receive a certified 
mailing for the second follow-up if needed.

III. Data

    OMB Control Number: 0607-0986.
    Form Number(s): ASE-L1 & ASE-L2, Annual Survey of Entrepreneurs 
initial letter and follow-up letter.
    Type of Review: Regular submission.
    Affected Public: Large and small employer businesses.
    Estimated Number of Respondents: 290,000.
    Estimated Time per Response: 35 minutes.
    Estimated Total Annual Burden Hours: 169,167.
    Estimated Total Annual Cost to Public: $0.
    Respondent's Obligation: Mandatory.
    Legal Authority: Title 13, United States Code, Sections 8(b), 131 
and, 182; Section 1(a)(3) of Executive Order 11625.

IV. Request for Comments

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden 
(including hours and cost) of the proposed collection of information; 
(c) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of this information 
collection; they also will become a matter of public record.

Sheleen Dumas,
PRA Departmental Lead, Office of the Chief Information Officer.
[FR Doc. 2016-29866 Filed 12-12-16; 8:45 am]
 BILLING CODE 3510-07-P