An article in the Wall Street Journal today presents research made at the University of Chicago, which finds that a small number of startups in the US economy has had the biggest impact on economic growth and job creation. The illustration below speaks for itself.
We all want small companies to take us back quickly to pre-recession employment levels. But policy makers globally need to try to temper those expectations of quick results, because economic growth and job creation are, in large part, self-fulfilling prophecies.
If our unrealistically high expectations leave us disappointed by decent, but not stellar, small business job creation, consumers and businesses may lack confidence and cut back, in fact limiting job creation. Economic growth is about perception and belief in it happening.
About J?rgen Eriksson :
J?rgen Eriksson is the founder of Bearing Consulting and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects across four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco.
Working with consulting engagements across Bearings practices, he has over the past ten years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.
Previous to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software packages for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.
Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also worked for the Swedish Institute of National Defense Research.
Source: http://blog.bearing-consulting.com/2012/11/13/small-business-generates-growth/
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