According to the Small Business Administration, small businesses have created 64 percent of net new jobs in the past 15 years. Now, the latest report from Intuit’s Small Business Employment Index reveals that SMBs are continuing to keep the economy on track through making hires.
The study reveals that small business employment grew by 0.1 percent in May, which translates into a 1.6 annual growth rate, according to Intuit. This means that approximately 25,000 new jobs were created by small businesses in May.
Moreover, these results bring the total number of jobs created by SMBs since October 2009 to 240,000. While the national unemployment rate lingers at 9.9 percent, it seems small businesses are driving national recovery, as experts have predicted they would.
Susan Woodward, one of the study’s authors, says one thing is “unambiguous in the Intuit data: employment and compensation per worker continue to show that a recovery is underway. The new hire rate continues to rise slightly, as does the hourly rate of pay.”
The U.S. Bureau of Labor Statistics reports that continued business formation is essential to full recovery. Entrepreneurs may consider incorporation as a patriotic act, as well as a means to earn tax savings and personal protection in the corporate world.