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Small Business Job Creation Is Stronger Than We Think

Small Business Job Creation Is Stronger Than We Think
Photograph by Matthew Staver/Landov

While small business job creation isn’t as strong as we’d like, it’s stronger than many people think. Since the recovery began, small and midsize companies have been producing more jobs than their larger counterparts and creating them at a faster pace than during the recovery from the 2001 recession. But because small business employment hasn’t yet caught up to where it was before the recession began, the perception that small employers aren’t hiring endures.

This matters more than you might think. Since big companies and small companies each account for about half of private sector employment, employment growth is usually strongest when both are creating jobs. Knowing which one is lagging the other helps Washington figure out what policies we need to boost employment growth.