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ERIC Number: ED279462
Record Type: Non-Journal
Publication Date: 1987-Feb
Recent Contributions of Small Businesses and Corporations to Rural Job Creation.
Miller, James P.
Independent (single-establishment) businesses with fewer than 100 employees accounted for 31% of the net increase in private nonfarm jobs in nonmetropolitan areas between 1976 and 1980, when the nation's employment was expanding rapidly. Those independent businesses which were in operation less than 5 years in 1980 created jobs at a net rate of 76%. Multi-establishment firms (corporations) accounted for about 68% of the net increase in nonmetropolitan jobs during 1976-80. Small corporations created almost 14% of the new jobs and large corporations (those with 100 or more employees) created 54%. The contribution of small businesses to rural employment growth may well be different during a period of rapid employment growth, such as 1976-1980, than during a period of sluggish growth which has occurred since 1980. Local planners should consider the advantages and disadvantages of both small businesses and affiliates of large corporations. Large corporations offer the potential for creating many new jobs in a single stroke, but the shutdown of a large branch plant can devastate a small rural community. The creation of small local businesses can help rural communities expand employment, but their failure rate is somewhat higher than for established businesses. (Author/JHZ)
Publication Type: Information Analyses
Education Level: N/A
Authoring Institution: Economic Research Service (USDA), Washington, DC. Agriculture and Rural Economics Div.