Small business job creation

Discussion in 'West Mall' started by BA93, Apr 2, 2009.

  1. BA93

    BA93 1,000+ Posts

    I always hear a stat that small business create ~75% of all new jobs. The latest is listed in John Cornyn's monthly email. Is that really true? I can only think of handful of friends that work for a company with less than 100 employees.

    The only way I can guess that this is correct is if the failure rate of small businesses is so high that the next new business hires the people that just lost their jobs with the previous failures. And if that is the case, there must be a category of people that just move from one failed small business to another.

    Or is that stat just repeated so many times, that it has now become fact?
     
  2. BevoJoe

    BevoJoe 10,000+ Posts

    Having been a consultant for small businesses for many years (not now) the basic structure was Owner who was very hands on, a couple of director types usually operations and administrative a supervisor and 25-75 employees. The employees are given best practices guides and work instructions to perform by the exec management. If the business fails it is usually becasue they had a product or service that could not evolve with changes in technology and ultimately because the owner only understood the limited number of products the company offered, operations ceased and the "going concern" got up and went. The 25-75 employees go on to other middle to small businesses but generally had little or nothing to do with the failure.

    I hope that helps some.
     

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