How Many New Jobs Do Small Firms Create?

Over the past decade, small business net job creation fluctuated between 60 and 80 percent.

For a more complete look at employment dynamics by firm size from 1989 to 2002, see www.sba.gov/advo/research/data.html#us. Here is a sample of the data for 2001-2002.

Employer Firm Births and Deaths by Employment Size of Firm, 2001-2002
  Size Class as Percent of Total
Industry Total < 20 < 500
Firm Births 3,369,930 51.9 90.0
Firm Deaths 3,660,161 48.0 90.0
Existing Firm Expansions 15,385,726 20.5 49.3
Existing Firm Contractions 17,756,053 12.9 43.9
Net Change (2,660,558)    

Source: U.S. Bureau of the Census.

 

Information courtesy of the Small Business Administration, Office of Advocacy.