Small Business Share of Jobs Dips Below 50%


July 25, 2013

Group of business people isolated on whiteBy Bob Coleman
Editor, Coleman Report

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.

He concludes

•         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.

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