A new report says small businesses don’t create jobs, large ones do.
Whether from candidates of every political stripe, every president from Ronald Reagan to Barack Obama, or your average talk show host, the prescription for economic recovery has been this: Small business, small business, small business.
So a paper from the National Bureau of Economic Research, written by economist John Haltiwanger and others, throwing cold water on this national assumption, is raising plenty of eyebrows around Washington.
Read the entire paper here, though it is rather thick. The primary theme: Small businesses as a whole don’t create an extraordinary amount of jobs. In fact, they’re responsible for destroying quite a few.
Young businesses do create jobs. It’s a subtle but important distinction. Even so, large firms are more reliable when it comes to job-creation