Economists debate the extent to which the recession is over in the United States, but they seem to agree on one thing – small businesses will be key to recovery.
The Small Business Administration agrees. The SBA reports that small businesses have created 64 percent of net new jobs over the past 15 years. Now, a report from the U.S. Bureau of Labor Statistics confirms that SMBs are the most reliable job generators in trying times.
The Wall Street Pit reports the BSL’s latest study shows job destruction declined for smaller firms when the national economy was hitting some of its lowest points throughout 2009. Moreover, job creation rates improved for small firms from March – June 2009.
This report indicates small businesses are some of the most stable entities in periods of economic turmoil. The BLS study also suggests sustaining business formation rates could be critical to national recovery.
In light of this report, entrepreneurs might consider business incorporation a safe bet. The stability of SMBs can be complemented by the tax breaks and limited liability that comes with incorporation. Plus, business formation may be deemed a patriotic act in the current climate.