Are they really what drive the US economy or are they the beneficiaries of wealth created by larger entities. I get that they employ a large percentage of the population. But the question is, do they really drive growth because of their innovation, contribution, etc. or is demand for their talent or service a result of something else?
I have all the respect in the world for small business owners. My friends that own small companies, a few who are on hard times now, are very talented, work hard and generally contribute to the local economy; Not so much as job creators but more as consumers.
This issue is being thrown around by both candidates during the current campaign, more than any other as I recall. Are they really looking out for Main Street or are they simply pandering to the large segment of the population just for the votes.
A couple of examples, my brother in-law is a welder by trade and has continued to stay busy throughout the recession. He has recently started a second company building elaborate stages for performers, television shows, etc. He has added staff, making money, etc. Is he the engine driving the economy or is he the beneficiary?
A couple of other friends have owned landscape companies for 20+ years. They typically have employed “documented” workers and pay them very little. They spend a lot on capital and materials - new trucks every couple of years and some equipment. For years they lived well because they added value. But now they are at the mercy of the success of others. There business have folded, they have gone back to lawnmowers in the back of old pick-up trucks, quite sad actually.
I have attached a couple of articles that attempt to address the issue. I don’t know that I agree with either, certainly not in their entirety, but I am interested in other’s thoughts.
The Truth Is That Small Businesses Are Not Good At Creating Jobs - Business Insider
Can small business save the economy? Probably not - Los Angeles Times