Our experience with small business is a little different. So we want to check in with the US census on the state of small and new business.
We have been looking at the US Census's web page on "Entrepreneurship and the US Economy" which collects statistics on small and new businesses. The produce a great set of charts show how job creation by new business and fallen off since 1997. The numbers tanked during the recession. Read the story here.
The web page has a bunch of great overview charts with links to the statistics. Charts 1,2 and 7 capture the issue.
(Chart 1). Shows the number of new businesses is trending up after the recession, but (Chart 2) the number of jobs created by new business is near it's all time low. New businesses are creating far fewer jobs than the peak in 1997. Chart 7 shows the majority of jobs for new business are created by firms larger than 250 employees while the number of jobs created by firms 1-250 has been decreasing. The trend accelerated during the recession.
We can speculate about what the charts are telling us
Basically, it looks like the many new firms are just freelancers and contract employees forced to start firms. They have no intention of growing a business. They simply want to get paid by an employer looking to avoid benefits.
Second, job growth comes from larger firms which are over 250 employees. Small, small business is not generating jobs the way it used to.