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Forget Tech Startups. Now 'Microbusinesses' Drive Job Creation

Forget Tech Startups. Now 'Microbusinesses' Drive Job Creation
Photograph by Chris Frazer Smith/Gallery Stock

Politicians like to say small businesses drive job creation. Journalists like to call politicians out for using self-serving clichés. That may explain the attention paid last week to a report arguing that Internet companies, not small businesses, are the real job creators.

That report (PDF) was written by Ian Hathaway, an economic adviser to tech startup lobbying group Engine. Not surprisingly, he argues that startups’ role in job creations has been “underrepresented in research on business dynamics and in small business policy.”