One of things that I, like other small businesses, like to talk about is that in 2010, 2 out of 3 jobs were created by small businesses. I’m also always touting the idea that small businesses are the engine of the economy and when small business rebounds, we’ll see the US finally completely emerge from the recession. Two articles recently released one by national website MSNBC.com and the other by local LI Business News, countered this idea.
Quoting new information released by the Bureau of Labor Statistics, big companies employ the majority of Americans working today. In fact, the data says that 46% of Americans currently employed today by a private organization are working for a company with over 500 or more employees. From there, 28% of Americans are employed by a firm with 49 employees or less and 26% of Americans are employed by a firm with 50 to 499 employees.
So why all the talk about small businesses? Well, the numbers for job creation are true. The Small Business Administration confirmed that 2 out of 3 jobs were created by small businesses. I took a deeper look at the numbers to see where this creation was actually coming from. When you drill deeper, you can see that these jobs are not being created equally. It’s start-ups and new, growing small businesses that are creating jobs, while older small businesses cut as many jobs as they add.
I still believe that small businesses are the engine of our economic recovery. With the unemployment rate steadily going down, the United States still has over 5 million jobs to add to the economy to get back to pre-recession numbers. We need to get to root of the problem, why older small businesses are struggling to maintain current levels of employees, and come up with solutions to make sure the small business community stays on track for growth.