On Jul 12, 2012, at 4:10 PM, Wojtek S wrote:
> There is another problem with the small business job creation
> trope, related to the 10 percent of business that have more than 20
> employees and less than 500. If a firm with, say, 450 workers hires
> 100 additional workers, it is said that 'small business created 100
> jobs' because that firm falls below the 500 people cutoff. But if the
> same firm sacks these 100 people next year, it is said that "large
> business lost 100 jobs', because that firm is now above the 500 people
> cutoff.
The original source of the small biz myth fell for that error.
More sophisticated analysis shows that most job creation comes from young firms that have survived the startup phase and are still expanding. They don't have to be small though.