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According to recently released data from the Small Business Administration, small businesses are bucking past trends and hiring more workers than previously found. Small companies employed 50.9% of private-sector workers in 2004. That is up from 50.7% in 2003. Additionally, it is the third consecutive year of hiring increases.
Reasons given as to why there appear to be gains in small business hirings while many larger companies remain stagnate in their hiring or are experiencing large cutbacks:
- Larger companies are more likely than small businesses to shed workers during recessions and slow-growth economies.
- Larger companies are more likely to be in manufacturing, a sector that leans toward replacing people with machines. Smaller companies usually occupy the service sector which depends more on people.
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