Between 2003 and 2004 the number of Utah firms without paid employees jumped 6.1 percent to 163,426. Nationally, the number grew by 4.7 percent.

"We're seeing more entrepreneurs, more people who want to start their own businesses," said Stan Nakano, Utah district director for the U.S. Small Business Administration. "It could be for a number of different reasons. Maybe they just don't want to work for anybody else. For some it can be having workplace flexibility."

Lenders granted 2,012 SBA loans totalling more than $314 million in Utah last year. And lenders appear more willing to give money to new companies, Nakano said. One-third of those loans went to start-ups.

Nonemployer firms represent the smallest of the small businesses and include independent contractors, family-run shops, Internet service providers, self-employed accountants and home-based enterprises. These establishments account for more than 70 percent of all businesses nationally and generate annual receipts over $887 billion.

Rapid growth in individual proprietorships "shows that Utah has a very strong economy," said Robert Spendlove, manager of demographic and economic analysis in the Governor's Office of Planning and Budget. "It reflects an economy in which new businesses are emerging and growing."

In Utah, 15 percent of these businesses are in real estate sales, leasing or rentals, reflecting Utah's healthy real estate market. The second largest group of firms, totalling 23,739, is comprised of nonemployer businesses in the professional, scientific and technical services sector.

Among the fastest growing segments nationally were building finishing contractors (22.5 percent), Internet service providers (18.7 percent), nail salons (14.7 percent), online retailers (12.7 percent), lessors of real estate (9.7 percent), formal wear and costume rental stores (8 percent) and motorcycle dealers (7.4 percent).

rwinters@sltrib.com