The Government War on Small Business
By: Mark B Rasmussen
Sep 08, 2010
The government DOES NOT “create” productive, value added, sustainable “jobs”, Small Business Does!
To help set the stage, let’s look at some important stats from the Small Business Administration (SBA). Small businesses:
Represent 99.7% of all employer[s]
Employ just over half of all private-sector employees
Pay 44% of total U.S. private payroll
Have generated 64% of net new jobs over the past 15 years
Create more than half of the nonfarm private gross domestic product (GDP)
Hire 40% of high-tech workers (such as scientists, engineers and computer programmers)
Are 52% home-based and 2% franchises
Made up 97.3% of all identified exporters and produced 30.2% of the known export value in FY 2007.
Small firms produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large-firm patents to be among the 1% most cited.
Further, if you look to the Kauffman Foundation, startup firms are the “sole engine” of job creation in the U.S. economy. Kauffman crunched a data set from the Census Bureau covering the years 1977-2005. In all but seven years during that period, existing businesses cut an average 1 million jobs… while firms in existence for a year or less created 3 million.