Are Small Businesses Creating Jobs?

Posted by on Oct 17, 2011 in Featured, Measurements | 7 comments

It is often talked about how small businesses are the reason for the most new job creations in the United States.  Typically it is stated that they create around 60 – 65% of the new jobs.  This is conventionally the case and the understanding, but is it the truth?

When you hear the words small business, what comes to your mind?  Do you think of a business operation with 20 to 30 employees?  Does the thought of 500 employees ever occur to you?  I can be honest and say that I definitely do not think of a business having 500 employees as small.  In fact that seems to be on the bigger end to me.  In the United States a business with 500 or less employees is considered to be a small business.  In Europe that would be considered a small to medium enterprise.  The small business category is one that only includes businesses with less than 50 employees.

So really it depends on what standards you are using to measure businesses on how many jobs small businesses are actually creating.  If you want to see both sides of the argument, watch the video below from Businessweek.  Scott Shane and Bill Dunelburg discuss their thoughts and views on the situation.