Four Critical Statistics for Small Business Employment

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Romney's four statistics for small business employment

In “Obama vs. Romney — Which Presidential Candidate Favors Small Businesses?” I wrote:

Obama conceded that everything depends on if the top few percent he intends to burden are actually the job creators. Fortunately, the U.S. Census Bureau collects exactly that data.

Of the 29 million U.S. business establishments, 95.9% have fewer than 500 employees; 4.1% have 500 or more. The large businesses employ 50.6% of the workers; the small businesses employ 49.4%. Job growth, however, is not equal.

The percentage of small businesses with 10 or fewer employees is 93.8%. In fact, 76.9% have no employees. Only 3.8% of small business establishments have 20 to 499 employees. But those businesses make up 64.0% of all small business employment.

Here is the documentation that supports the bolded statistics above. The latest data we have is from the “Employment Size of Employer and Nonemployer Firms, 2008“:

Small Business Employment 2008

Small business employment top 3.8%

Small businesses are essential to economic growth and employment. Disparaging their entrepreneurial growth as trickle-down economics misses the shower of prosperity!

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David John Marotta is the Founder and President of Marotta Wealth Management. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. In addition to his financial writing, David is a co-author of The Haunting of Bob Cratchit.