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Jul 16 / Jonathan

Small businesses and jobs creation

We need to be reminded of this from time to time. Dean Baker does the reminding today.

The Role of Small Business in the Economy Might be a Mystery to the Washington Post, but Not to Economists

… There had been some debate in the 90s about whether small businesses were responsible for a disproportionate share of job creation. While this is true, small businesses are also responsible for a disproportionate share of job loss. Most small businesses only survive a few years. As a result, small businesses on net, create new jobs at roughly the same rate as larger businesses. …

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