via Andrew Sullivan:
A very interestingÂ commentaryÂ about small businesses and failing economies. Given that the overwhelming number of New Zealand businesses are small, surely we should be mindful of what other economies show us.
The developed countries with the highest percentage of workers employed by small businesses include Greece, Portugal, Spain, and Italyâ€”that is, the four countries whose economic woes are wreaking such havoc on financial markets. Meanwhile, the countries with the lowest percentage of workers employed by small businesses are Germany, Sweden, Denmark, and the U.S.â€”some of the strongest economies in the world.
This correlation is not a coincidence. It reflects a simple reality: small businesses are, on the whole, less productive than big businesses, and though they do create most jobs, they also destroy most jobs, since, while starting a business is easy, keeping it going is hard. This is true around the world.