I quick follow-up on my post from yesterday about small business employment trends….
Denny Dennis with the NFIB Research Foundation pointed out to me that the data from the Bureau of Labor’s Business Employment Dynamics (BED) report adds additional worrisome clues into the state of job creation among entrepreneurial firms.
Typically, small business creates modest employment growth during recessions, while big businesses have massive job losses. However, the BED data indicates that this recession is seeing small business is creating fewer jobs than large businesses.
Any ideas about what might be causing this small biz drought (i.e.: startup funds are harder to come by, distraction by national health care debate, fears over rampant federal spending, general public uneasiness causing people to remain in “comfort” zones, etc)?
There’s definitely lots of worry as the recession plunges along. It is the Small Businesses that have more control over their setting and outcome, as the employment is way less than the Big ones. A community with a small-society is always more peaceful than a larger corporation, where riots can occur, and requires much more management control.