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Is Employment Growth Really Coming from Small Establishments?

Author

Listed:
  • Sammis B. White

    (University of Wisconsin-Milwaukee)

  • Jeffrey D. Osterman

    (University of Wisconsin-Milwaukee)

Abstract

Considerable controversy has surrounded the early findings of David Birch that small businesses create at least a majority of all new jobs in the United States. Compounding the controversy has been Birch himself who has disavowed his earlier conclusion. This article reexamines the issue of contribution of various size business establishments to job growth using a better dataset, a modified definition of a "small business, " and an ability to track the job-generating contributions of various size establishments across segments of the business cycle, across industry sectors and specific industries, and across differing geographic locations. In addition the article examines the role of using gross versus net job generation as the measure of job generation contribution. The article concludes that the role of establishment size varies by definition, time period, industry, and location.

Suggested Citation

  • Sammis B. White & Jeffrey D. Osterman, 1991. "Is Employment Growth Really Coming from Small Establishments?," Economic Development Quarterly, , vol. 5(3), pages 241-257, August.
    • Handle: RePEc:sae:ecdequ:v:5:y:1991:i:3:p:241-257
    DOI: 10.1177/089124249100500305
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    Cited by:

    1. Thomas Kenworthy & W. Edward McMullan, 2013. "Finding Practical Knowledge in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 37(5), pages 983-997, September.
    2. S B White & L S Binkley & T J Chefalo & W F McMahon & M M Thomas, 1994. "Which Business Establishments are Really Generating New Employment?," Environment and Planning C, , vol. 12(4), pages 409-424, December.
    3. Felsenstein, Daniel & Fleischer, Aliza, 1999. "Capital Assistance and Small Firm Growth: Implications for Regional Economic Welfare," ERSA conference papers ersa99pa395, European Regional Science Association.
    4. Andrew M. Isserman, 1993. "State Economic Development Policy and Practice in the United States: A Survey Article," International Regional Science Review, , vol. 16(1-2), pages 49-100, April.
    5. Sherri Leronda Wallace, 1999. "A Case Study of the Enterprise Zone Program: “EZ†Avenue to Minority Economic Development?," Economic Development Quarterly, , vol. 13(3), pages 259-265, August.

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