Our elected officials give disproportionate attention to the smallest small businesses when evaluated from the perspective of economic impact. Microbusinesses account for a tiny fraction of GDP and employment, yet our elected officials trip over each other trying to help and praise them.
Why are micro businesses so important to policy makers?
I think the answer lies in the two charts shown below. While businesses with between zero and four employees account for only 5 percent of private sector employment, they make up 61 percent of all businesses with employees. By contrast, big business – companies with 500 or more employees – account for the majority (51 percent) of private sector employment, but comprise less than one percent of companies.
To read the full, original article click on this link: Share of Firms or Share of Employment?
Author:Scott Shane
