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The Small Business = Job Creation Myth

Are businesses really the key to job creation?














We keep hearing in the news about how U.S. employment is going down.

One of the places we’re supposed to look for a solution is to small businesses.

But is that really the right place?

Check out this article called “Small Business Ain’t Employing Like it Used to” by Scott Shane and learn about why looking to small businesses for job creation might be a myth…


“It’s paradoxical.”

“While everyone from politicians to the media extol the value of small business to job creation, its share of U.S. employment has been on a long-term decline.”

“The majority of the private sector labor force now works in big companies, with that fraction at 51 percent in 2009, up from 43 percent in 1946. The share in medium-sized businesses is down slightly from 34 to 31 percent, while the fraction in the smallest businesses – those with less than 20 employees – has declined from 23 percent to 18 percent.”

Click here to continue reading and learn how things have changed when it comes to job creation and small businesses on

Photo by kevin dooley

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About Scott Aughtmon (1872 Articles)
I’m author of the book 51 Content Marketing Hacks. I am also a regular contributor to and I am the person behind the popular infographic 21 Types of Content We Crave. I’m a business strategist, consultant, content creation specialist, and speaker. I’ve been studying effective marketing and business methods (both online and offline) since 1999. ===> If you would like to see ways that we could work together, then please click here to learn more.

1 Comment on The Small Business = Job Creation Myth

  1. To infer that a business sector that employs 49 percent of the population is not a significant job creator is rather ludicrous the decline outlined is a perfect example of the attack on innovative and important job creators over the course of several decades. That more employment lies with large employers during a time of high unemployment is an indicator that large employers are Inefficient at creating jobs. Come back, Shane, when you have stats that prove your point when unemployment trends are reversed.

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