Some facts from the newly-released Small Business Growth: Searching for Stylized Facts, a report from the US Small Business Administration.
[Why did I choose these facts to reprint? Because small business really IS small business - one to four employees. It's important for folks trying to sell local online advertising to remember just how strapped resources are at most small, local businesses]
- Only three percent of small businesses are fast growing firms (defined as having a 50 percent or more increase in annual employment with at least a five-employee increase)
- Most firms start in the 1-4 employment size class and do not grow beyond this size class.
- Fast growing firms had higher rates of shrinkage in employment following their large one-year employment increase. The year after fast growth, 55 percent of fast growers declined in employment versus the universe’s 25 percent.