Suppose President Obama is considering different alternatives to
stimulate job creation. One f
ocuses on the largest businesses, the
other on medium-sized firms, and the third on the smallest companies.
Being a smart guy, he wants to see the data before he makes a decision.
So he asks his advisors, “What share of jobs does small business
create?”
Bizarre as it might sound, the answer he will get depends on which government agency’s numbers his advisors look at. In a recent working paper, Brian Headd, a Small Business Administration economist, reported the portion of net new employment – jobs created minus jobs destroyed – in different sized firms since 1993. Drawing on statistics from the two main government agencies responsible for calculating these figures, the Bureau of Labor Statistics (BLS) and the Census, he created simple pie charts to show the portion of net new employment produced by businesses of less than 20 workers, 20 to 499 workers, and more than 500 workers.
To read the full, original article click on this link: The Ideal Small Business Job Creation Numbers for Politicians | Small Business News, Tips, Advice - Small Business Trends
Author: Scott Shane
