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Why the recovery eludes small business

from Bloomberg Businessweek

The Federal Reserve Bank of New York recently released a study to explain why employment at small businesses dropped so much more than employment at large companies during the Great Recession. The upshot of the Fed's analysis: Small employers cut staff so severely because of a drop in consumer demand. Scott Shane, writing for Businessweek, explains that he thinks two factors — reduced access to credit and the concentration of small businesses in the worst hit sectors of the economy — play a bigger role than the Fed researchers acknowledge. more

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