Since small businesses have historically created a disproportionately large share of new jobs, this book analyzes the factors that lead new businesses without employees to hire their first employee. This is a significant aspect of small business job creation. Given that about three in four small businesses do not have employees, these non-employer businesses present an important source of potential new jobs. Nonemployer firms-businesses without employees-represent a large percentage of businesses; however, little is known about their dynamics (entry and exit). This book seeks to illustrate basic statistics about the prevalence of entry and exit for nonemployers and the local conditions that led to their entry.