Small Businesses Fuel Economic Growth, Innovation, and Job Creation

Abstract

Small businesses, which employ about half of the nation's private-sector labor force, have made important contributions to the creation and retention of jobs in the economy during both recessions and expansions. Small businesses are responsive to customer needs, maintain high worker productivity, develop innovative methods of accomplishing work, create jobs, and provide income to workers. As large businesses continue to reduce the size of their workforce, small businesses will play an even more important role in sustaining the economy and providing jobs in the future. In addition to supporting the American economy, small businesses contribute to the welfare of community life. Studies have shown that over two-thirds of gifts to the arts come from small-sized and medium-sized companies, rather than large-sized companies.