Wednesday, September 24, 2014

Big companies versus small companies

Everyone loves small businesses, while big businesses generate more mixed feelings. This leads to people urging others to support small businesses simply because they are small. Or to claim that small businesses are the most important part of our economy. Or to claim that the rise of big businesses is the cause of stagnating incomes. Or to say small businesses are the source of real innovation. Or to only worry about laws that put extra burdens on businesses when they think about how it will affect small ones, which surely must get an exemption.

So here's a few interesting data points:

If you compare company sizes in various countries, innovation and economic strength are negatively correlated with the size of the small-business sector. And larger companies pay their employees more than smaller companies.

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