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According to [0] "...new research by the Treasury Department finds that small businesses — defined as those with income between $10,000 and $10 million, or abou
by adestefan 15y ago
According to [0] "...new research by the Treasury Department finds that small businesses — defined as those with income between $10,000 and $10 million, or about 99 percent of all businesses — account for just 17 percent of business income, and only 23 percent of them pay any wages at all." It's pretty hard to argue that makes them the "engines of the economy."
[0] http://www.nytimes.com/2011/10/24/opinion/small-businesses-arent-key-to-the-economic-recovery.html?_r=2&ref=opinion http://www.nytimes.com/2011/10/24/opinion/small-businesses-a...
- wpietri 15y agoNot quite. When people say things like "the engines of the economy, small businesses and startups", they are referring to job growth and innovation. Large businesses have most of the revenue, but small, new businesses are where tomorrow's champions come from: Each wave of firm startups creates a substantial number of jobs. In the first years following entry, many startups fail [...] but the surviving young businesses grow very fast. In this respect, the startups are a critical component of the experimentation process that contributes to restructuring and growth in the U.S. on an ongoing basis. -- http://www.nber.org/papers/w16300.pdf http://www.nber.org/papers/w16300.pdf