Elance Blog

Small Business Economy 2011: Small Firms Create More Jobs

According to the Small Business Economy 2011 report released yesterday, small businesses outperformed large firms in net job creation nearly three out of four times over an 18-year span.

The Office of Advocacy of the U.S. Small Business Administration (SBA), a voice for small businesses within the federal government, said that quarter by quarter, small businesses with fewer than 500 workers outperformed large firms (500+ workers) in making new jobs.

Since 1982, the Office of Advocacy has produced an annual report collecting information about national small business contributions to the economy and trends that have resulted.

Additionally, this year's report showed that the number of "employer firms" has fluctuated from just under 5 million to just over 6 million firms over the past 25 years, while the larger number of firms without employees has increased steadily, from about 14 million in 1992 to nearly 22 million in 2010.

To see the full report, including detailed tables on all of the data collection, visit the SBA website release here.