Small Businesses Responsible for Nearly All New Jobs

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This story is from Inc.com and confirms something we’ve known all along.  Forget the Fortune 500.  It’s not Wall Street that really drives the economy.  It’s Main Street.

Ninety percent of all U.S firms have twenty employees or less.  These companies create more than 97% of all new jobs according to a new report by the Small Business Administration.

While the news is full of stories about big companies laying off hundreds of employees, many of those people are finding new jobs with smaller firms, or starting their own businesses.  In 2003-04, the last year for which statistics are available, companies with less than 20 employees created more than 1.6 million new jobs, 97.1% of all new jobs created.

It will be interesting to see how much attention the 2008 presidential hopefuls, and other politicians, pay to this critical piece of the US economic pie. 

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