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Small business employment in recessions and expansions

from Small Business Trends

Small-business employment has grown more slowly than big business employment since the end of the Great Recession. That wasn't supposed to happen. Small companies, the argument goes, are more nimble, making their employment decisions more responsive to economic conditions. The evidence was once consistent with this theory but the pattern has broken down over the past two decades. Between 1977 and 1991 — but not since 1991 — small company employment grew faster than big business employment during economic expansions and shrank faster during economic contractions. more


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