Where do jobs come from?
A new analysis of job gains and losses from the Small Business Administration Office of Advocacy
Over a recent 15-year period, small businesses created some 65 percent of the net new jobs in the private sector, according to conservative estimates cited in a new report from the Small Business Administration (SBA) Office of Advocacy. In the report "An Analysis of Small Business and Jobs," (http://www.sba.gov/advo/research/rs359tot.pdf), SBA economist Brian Headd notes that many of the new jobs are in new business startups, but an even larger share are in expanding firms of all sizes--particularly mid-sized firms with 20-499 employees.
"More and more, we're finding that both new startups and ongoing high growth firms have important roles to play in the labor market," said Acting Chief Counsel for Advocacy Susan M. Walthall. "Fast-growing firms scattered across the economy create a large share of jobs--and because no one can predict which idea will be the next to catch on, it's important to create an environment in which a wide spectrum can start up and expand."
Advocacy's analysis of the quarterly Bureau of...
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