There is no doubt that, collectively, small and medium size businesses employ more people than large/big businesses. That is simple common sense (which, as the vaunted Bernard “Lefty” Kreh, et al says “Common sense isn’t too common these days”). There are far more small businesses than large businesses, just like there are far more small fish in the sea than really big ones.
But that doesn’t make the big fish any less important to the health of the ocean.In terms of business and employment, with all the rhetoric lately about helping small businesses and small businesses being the “engine” of the economy to spur job growth big business has been ignored. Big business has been put into the same category of thinking as “the rich” and taxation – i.e. doesn’t matter what happens to “the rich” they will always be “rich” to tax the hell out of them.
Same with big business.The thinking is that big businesses will always be strong employers so it doesn’t matter what the environment is like for them. Small business need help more.
And that just is not true.
While the sheer number of people employed by smaller business is greater than larger business for the reasons listed above, the reality is that when you compare as a group employees of small businesses and big businesses those that work for big business generally get paid more, have better pay and benefits (health, insurance, retirement, vacation etc) than those working at small business. This is again just common sense. A larger business is larger because they have more sales, more income, more profit and can therefore better afford to offer employees more in the way of compensation than a small business.
MasterPo isn’t going to argue small vs. large. Over the course of MasterPo’s [so-called] career MasterPo has worked for both small (sometimes micro!) business and large/huge businesses. There were advantages and disadvantages to both. But the reality was that on the whole the larger businesses offered greater options and possibilities for an employee than the smaller ones.
So while small business may be the first line in the economy for generating new jobs as a whole, it is the bigger businesses that advance the standard of living and the value of work by offering the better compensation and bennies (as a whole).
No country every achieved economic strength by thinking small.