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Who Creates Jobs – Small Companies or Large Companies?

By 440 Wynn Bigg]
Bigg Success Contributor

Wynn Bigg Today


ADP, a leading provider of human resource solutions worldwide, recently released the ADP National Employment Report. Once again, it highlighted a trend that has occurred for years. They found that most job losses for the period covered were at large companies (defined as companies with more than 500 employees) while small companies (defined as companies with less than 50 workers) increased employment.

That’s why I love small business! It’s good for us!

For years, it’s been found that over the course of the business cycle, large companies tend to remain relatively flat when it comes to total jobs.

During boom times, they tend to hire a lot of people, usually outpacing small businesses.
Then times get tough and they tend to lay people off. The net effect is few net jobs gained.

Small companies also tend to hire when things go well, but they don’t tend to lay off people like their large company brethren. So the net effect is a significant increase in jobs.

When it comes to creating jobs, David trumps Goliath almost every time! Research has shown for years that almost all of the net new jobs come from small businesses!

You can participate in this phenomenon in three ways:

#1 – Support small business.

When it makes sense, purchase from small business. They have to deliver good value, but if it’s a toss-up, choose the small business!

#2 – Work for a small company.

You’re less likely to face a layoff, as mentioned previously. You can also be a bigger player in a small firm. It’s a great way to get an inside look at what it takes to run a business. You may even get a participation in the success of the business.

You have to weigh your options, but you may find that you enjoy working in a small company much more than a large one.

#3 – Start your own small business.

Change creates opportunity for business owners. That’s the good news – change is happening faster than ever! So there’s more opportunity than ever to start your own business. Look for change to find your opportunity.

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(Image by Ahmed Rabea, CC 2.0)