“From the perspective of the economy as a whole, small companies are not the real drivers of growth. One can see this by looking at the track record of the world’s economies. The developed countries with the highest percentage of workers employed by small businesses include Greece, Portugal, Spain, and Italy—that is, the four countries whose economic woes are wreaking such havoc on financial markets. Meanwhile, the countries with the lowest percentage of workers employed by small businesses are Germany, Sweden, Denmark, and the U.S.—some of the strongest economies in the world. This correlation is not a coincidence. It reflects a simple reality: Small businesses are, on the whole, less productive than big businesses, and though they do create most jobs, they also destroy most jobs, since, while starting a business is easy, keeping it going is hard.”
James Surowiecki in The New Yorker
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
What should you be stockpiling for 'World War Three'?In the Spotlight Britons advised to prepare after the EU tells its citizens to have an emergency kit just in case
-
Carnivore diet: why people are eating only meatThe Explainer 'Meatfluencers' are taking social media by storm but experts warn meat-only diets have health consequences
-
Scientists want to fight malaria by poisoning mosquitoes with human bloodUnder the radar Drugging the bugs
-
Issue of the week: Car dealers’ showdown with Teslafeature Tesla's direct-sale business model is coming under fire in New Jersey and many other states.
-
Issue of the week: Has Washington defeated Wall Street?
feature The Dodd-Frank Act forced banks to sell off “many of their classic ‘Wall Street’ businesses. How are the banks doing?
-
Issue of the week: Is 2014 the recovery year?
feature Economic forecasters generally think 2014 will “be a breakout year” for the U.S. economy.
-
Issue of the week: Signs of a true recovery
feature Could the economy finally be back on track?
-
Issue of the week: The economy’s new normal
feature Are we in “a permanent slump?”
-
Issue of the week: When is inflation just right?
feature Though it has been battled in past decades, some economists believe a little inflation is good for a weak economy.
-
Issue of the week: The rise of a part-time economy
feature The economy has created new jobs for the 34th month in a row, but most of them are low-paid and part-time.
-
Issue of the week: A disappointing jobs report
feature The economy added just 88,000 jobs in March, less than half of Wall Street’s expectations.