Is Small Business in Decline?

The number of nonemployer firms has risen steadily in this decade, from 16.5 million in 2000 to an estimated 21.1 million in 2007. An estimated 637,100 new employer firms began operations in 2007 and 560,300 firms closed that year.  That is what the Small Business Administration had to say about the growth of small business over the last decade. According to the agency, there has been a steady growth in the number of small firms opening up shop in the United States. As of 2007, small businesses (those with 500 employees or less) made up 99.9% of the businesses active in the country. These small businesses also: Represent 99.7% of all employer firms. Employ about half of all private sector employees. Pay nearly 45% of total US private payroll. Have generated 60% to 80% of net new jobs annually over the last decade. Create more than half of nonfarm private gross d... [Read Full Article]