Small Business, Entrepreneurship, and Industrial Dynamics
Most firms are small and don’t grow very much. Small firms have lower productivity and shorter life expectancy, pay lower wages, and provide fewer benefits and less employment security than large firms. They create a lot of new jobs, but they also often fail, so that their role as net creators of employment is unclear. Nevertheless, a strong argument can be made that small firms, especially entrepreneurial ones, are important — indeed, indispensable — for long-term economic growth and economic welfare.
KeywordsSmall Business Small Firm Large Firm Innovative Activity Entrepreneurial Firm
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