Tito's Blog

Small businesses create 65% of all jobs! Or not?

Yes, small businesses account for 65% of net job creation in the US.

But the Small Business Administration’s Office of Advocacy that publishes those statistics defines small businesses as all companies with fewer than 500 employees. With that definition, 99.6% of the 4.8 million private employers in the US are small businesses.

So I would say: largest 0.4% employers create 35% of all net jobs, and that’s precisely the issue with long-term job (non-)growth.

Andy Grove On Manufacturing, Scale and Jobs

Intel founder Andy Grove wrote an excellent piece busting some myths on innovation, job creation, emerging markets and the role of manufacturing in a developed economy.

Today, manufacturing employment in the U.S. computer industry is about 166,000 — lower than it was before the first personal computer, the MITS Altair 2800, was assembled in 1975. Meanwhile, a very effective computer-manufacturing industry has emerged in Asia, employing about 1.5 million workers — factory employees, engineers and managers.