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To: Sir Napsalot
The following is the best explanation I've found for why there is a discrepancy in business size vs. employment models:

http://www.stlouisfed.org/publications/re/articles/?id=2087

Using Business Employment Dynamics (BED) dataset from the Bureau of Labor Statistics, there is a table which demonstrates average gross and net job gains at all private business establishments from the third quarter of 1992 through the first quarter of 2010.5 Over this roughly 18-year period, gross job gains per quarter averaged a little less than 2.8 million, or about 929,000 per month. Since the 2007-2009 recession was extremely severe, the table includes a separate column that excludes the data from that period.

/*snip*/...businesses with fewer than 20 employees provided the largest percentage of gross job gains (about 30 percent). Businesses with between 20 and 99 employees accounted for the next largest share (about 27 percent), with the largest firms (500 or more) accounting for a somewhat smaller percentage (about 26 percent). The remaining category—businesses with between 100 and 499 employees—accounted for a smaller percentage of gross job gains. All of these percentages are little-changed if we exclude the recession period.

The analysis in the table seems consistent with the conventional wisdom that small businesses are the largest source of job creation in the economy. However, as suggested by previous studies, the conclusion tends to change when the focus switches to net job creation.

/*snip*/Finally, and perhaps most importantly, the BED data show that since 1992, net job creation tended to be largest among the largest firms: These firms accounted for about 38 percent of the total. The smallest firms showed the smallest percentage of net jobs created. This result does not change if the past recession is excluded from the sample.

In short, small businesses showed higher rates of gross job creation, but they also exhibited high rates of job destruction. Looked at from this standpoint, net job creation matters most. END OF ARTICLE QUOTATION

It all depends on how you want to interpret the data; and, of course, there is always the confusion of business size, especially when considering franchises. I think the real importance of small business is that it can be a vehicle for wealth creation (or destruction) and thereby has served as the incubator for America's upper middle class...therefore despised by the Regime.

39 posted on 07/20/2012 8:56:27 AM PDT by LoveUSA (God employs Man's strength; Satan exploits Man's weakness.)
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To: LoveUSA

Thanks, I’ll study it more in detail later.


42 posted on 07/20/2012 9:14:47 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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