It's not actually clear, Mark Thoma just blogged about this w/r/t an NBER paper released earlier this month on this same question: http://economistsview.typepa

It's not actually clear, Mark Thoma just blogged about this w/r/t an NBER paper released earlier this month on this same question: http://economistsview.typepad.com/economistsview/2010/08/who-creates-jobs-small-vs-large-vs-young.html http://economistsview.typepad.com/economistsview/2010/08/who... Conclusion seems to be that job creation happens most heavily in young firms which manage to survive a few years, but that the high rates of job destruction pretty much wash out small businesses gains otherwise. Would be interesting to hear how VC plays into the equation.