Small Business: Not Driving Job Growth But Keeping You Afloat

Despite pundits and politicians claiming that job growth happens in small businesses, companies with 50 employees or fewer aren’t hiring as quickly as large businesses, a new Careerbuilder survey finds.

The site reported recently that just 24 percent of small businesses plan to add staff in the next six months.

At the same time, however, small businesses appear to be a way for Americans—one in five of whom have seen their household income drop by a quarter—to bring in some side cash: of the respondents who said they had started a business in the past year, 96 percent of them said they had kept their day job at the same time.

A survey from the National Federation of Independent Business, released around the same time as the Careerbuilder survey, shows that small business owners’ attitudes are “stagnating,” reports Kiplinger.
“The small business sector is not on a positive trajectory and with this half of the private sector missing-in-action, the economy’s poor growth performance is no surprise,” said William Dunkelberg, NFIB’s chief economist.