July 25, 2013
Further proof there is a true access of capital by Main Street, right?
Not really says Case Western Reserve’s Scott Shane. He crunches a lot of numbers and he writes the driver of higher employment numbers by big companies is the decline of “job destruction.” That occurs when firms shut down or shrink.
• Between 1977 and 2011, employment at businesses with fewer than 500 employees grew 60.2%
• However, during the same period employment at businesses with 500 or more employees grew 80.7%
The professor doesn’t address the common stat we all love to quote –small business creates about 2/3 of new jobs.
However, he implies the small business job destruction rate due to shutterings and contraction is higher than big business.
Which perhaps is actually a result of a lack of capital on Main Street.