Understanding the Importance of the Economic Census

By BEN HEINEMANN While our nation’s decennial census, the one that counts the population and provides statistics about the people living in our country, is a well-known staple of government and society dating all the way back to 1790, there is another census that is just as important, if not more important when it comes to business and the way we measure our country’s economic success. The economic census is our government’s official tool used to measure the economy and the businesses operating in America. Census forms are sent out to more than 4 million businesses of all types and sizes, and the data collected serves as the cornerstone of our country’s economic statistics, according to Tom Mesenbourg, the acting director of the U.S. Census Bureau. The economic census is collected every five years, specifically in years ending in two and seven, which means business owners should be expecting to see a form in their mail boxes starting in November. “The economic census doesn’t get the publicity that our once a decade decennial census does, but it is one of the nation’s most important economic statistics programs,” Mesenbourg said at a presentation during the International Franchise Association’s 2012 Public Affairs Conference. “The economic census provides information on over 1,000 different industries and will provide detailed information not only for the nation, but for states, counties, places and in many cases information down to the zip code.” If you’ve ever wondered how our states and country calculates its gross domestic product, or GDP, it’s because of the data provided by the economic census. “It also serves as the benchmark for the Bureau of Labor Statistics’ price and productivity statistics as well as the Census Bureau’s principal economic indicators like our monthly release on retail trade,” said Mesenbourg. So while the economic census is something many people have not even heard of, it’s easy to imagine how important it is when it comes businesses and franchises. The data provided by the census is also a key tool the IFA uses to take the pulse of the franchise industry and small business as a whole. “As you all know, the primary mission of the IFA since our founding more than 50 years ago has and will continue to be, to protect, promote and enhance the franchise industry,” said Steve Caldeira, president and CEO of the IFA during the conference. “To help achieve our mission, we rely on the U.S. Census data as the foundation of our economic analysis.” Since the data is only as good as what is provided by the businesses that receive a form, participation is key to the census’ success, and Mesenbourg made sure to reinforce that idea when speaking to the gathering of franchise owners. “We really need your help in promoting the 2012 economic census,” continued Mesenbourg. “First, we want you to let your franchisees know that they will be receiving an economic census form later this fall. Second, we need you to tell them how important filing that report form is.” Since the U.S. Census board has partnered with the IFA for many years developing the content of the census, the form will also include a franchise question, giving more insight into the more than 340 industries data is collected from. With so much at stake that is dependent on a census few have heard of, it’s crucial for business owners to take the time to fill out the forms correctly and completely and submit them to the bureau by the deadline of February 13, 2013. Caldeira reinforced that notion to the audience. “Having the best data available is so critically important.”