Collector - July 2018 - 12
Nearly half of
51% and 100%
of their customers
are small businesses.
of ACA member
Small Business Means Big Business in Collections
Research finds 87 percent of ACA member companies are small businesses.
ou may have heard this
before: "Small businesses and
entrepreneurs are the engines
of the U.S. economy." That saying is true;
nearly 7 in 10 jobs are created by small
businesses, according to data collected by the
Small Business Administration. How does
the small business landscape look for the
accounts receivable management industry?
ACA International released new research
that shows the vast majority (87 percent) of
its member companies are small businesses
and nearly half of ACA members report
that a majority of their customers are also
According to the white paper, Small
Businesses in the Collection Industry
in 2018, 44 percent of ACA member
organizations have fewer than nine
employees while 93 percent of members
have 99 or fewer employees. Less than
1 percent of the members in ACA, the
largest membership organization in the
accounts receivable management industry,
has more than 500 employees.
"Small businesses are the backbone
of this country, and ACA International
is proud to represent a growing number
of high-caliber entrepreneurial firms
that contribute to our robust economy,"
said ACA CEO Mark Neeb. "This recent
white paper clearly shows that small
businesses operating in the accounts
receivable management industry provide
career opportunities, good paying jobs
and invaluable services to their local
Going deeper into the data, the Small
Business Administration Office of Advocacy
defines a small business as either "an
independent business having fewer than 500
employees," or one that generates annual
receipts that do not exceed the SBA size
standard; for debt collection companies, the
"Small businesses are the backbone of this country,
and ACA is proud to represent a growing number of
high-caliber entrepreneurial firms that contribute to
our robust economy."
size standard is $15 million. The research
shows that 87 percent of ACA member
companies have less than $15 million in
average annual receipts.
It turns out the industry workforce is
increasingly more diverse. ACA found that
almost one-third (32 percent) of responding
ACA members indicated that they were
female-owned businesses while 6 percent
reported that they were minority-owned;
an additional 5 percent are both female
and minority-owned. The overwhelming
majority of these organizations also qualify
as small businesses.
The research also shows that affordable,
professional debt collection services are a
critical service for other small businesses.
Nearly half of ACA members (45 percent)
indicated that between 51 percent and 100
percent of their customers are also small
ACA's latest report is part of an ongoing
research initiative to collect more original
data about the accounts receivable
management industry, and quantify how
debt collectors help consumers, businesses
and the overall economy. You can read
the white paper on ACA International's
research webpage: www.acainternational.