Small Business in the Aftermath

of the Great Recession

Growth, Business startups/endings, and

employment

What’s the difference between big business and small

business?

What’s a Small Business?

• It depends on who you ask• SBA: company with fewer than 500

employees• BLS: 250 or fewer employees• Affordable Care Act: 50 or less

Economic Growth: Small Business vs. Big Business

Business Activity: Small vs. Large

Business Startups and Endings

Startups and Endings (Florida)

Employment: Small (<50) vs. Big (>250)

Small (+)

Small (-)

Big (+) Big (-)

2003 3318 3257 1704 17472004 3410 3239 1785 15712005 3466 3292 1819 15502006 3426 3287 1720 15542007 3339 3330 1700 15962008 3090 3460 1501 19132009 2856 3354 1303 19562010 2985 3198 1558 14002011 3034 2887 1608 13782012 3041 2846 1653 14032013Q2 3064 2847 1768 1465

Changes in Employment: Recession vs. Recovery by Firm Size

recession recovery net

Small (<50) -3.8m +2.2m -1.6m

Mid (50-250)

-1.6m +1.7m +0.1m

Large (250+)

-4.3m +3.6m -0.7m

Self-Employed by Age

• Self-employed aged 25 and younger declined by 19% between 2005 and 2010

• Self-employed aged 65 and older rose by 24%

• Number of self-employed down by 1 million or 10% since the start of the recession (9.4m now compared to 10.4m prior to recession)

Role of Lending