The State of Small Business in America
What is the state of small business in America? This is an important question to ask for the overall health of the economy and job market, especially since we know that as recently as 2007 young firms were creating two-thirds of all jobs in America. Unfortunately, recent testimony by Martin Neil Bailey of The Brookings Institution paints a relatively bleak picture for small businesses in America. According to Dr. Bailey, there's been a 20% decline in new businesses since the start of the 2008 recession. What's more, small business optimism hasn't really recovered from the depths of the recession, which in turn was the culmination of a seven year overall decline. For those firms that have gotten off the ground and are hiring, they still struggle to find the right skilled workers for their business.
This information is drawn from testimony by Dr. Baily to the U.S. House of Representative's Committee on Small Business and the entire presentation is worth reading. His conclusion that the "Great Recession has hit almost everyone hard" rings a little hollow in the face of overwhelming regulatory obstacles for small businesses. One thing is true: small businesses are an important part of America's economy, now and in the future. Their resilience has been proven time and again, even in the face of economic stagnation.