Most of the net new jobs are created by new small businesses which are incredibly valuable to the labor market in the long term. These new small businesses are continuing businesses are providing new jobs along with business locations with large employment swings dominating net employment results. They fluctuate most with correspondence to the economy.
- More than one half of the private-sector is employed by the small businesses and the remaining percentage is employed by the large businesses. About 60 million people were employed by small businesses in 2006.
- There was a slight decline in the late 1990s in small firm employment, but this returned to base in the 2000s.
- Economies of scale is the reflection of the employment share of the small firms in private sector. These are largely affected by the whole, technology, the fortunes of various industries, financing, consumer preferences, and a myriad other factors.
- In 2008, the small firms share of part time workers is 21 percent and the part time workers share of small firms is 18 percent.
Net Job Creation
- Majority of private-sector net job creation was accounted by the small businesses for the past 15 years. According to the Bureau of Labor Statistics, about 65 percent of net jobs are created by small businesses. According to Bureau of the Census, small businesses create about 90 percent of jobs (Statistics of U.S. Businesses).
- The existing small business firms play a predominant role in the net job creation. From 1993 to mid 2008, continuing small business establishments have accounted for 69 percent of the net new jobs.
