Saturday, April 29, 2017
For many years I’ve been underscoring the fact that small businesses in the US (and Canada) are the primary generators of net, new jobs in the economy. Larger organizations tend to use automation and lean practices to reduce employment, and hire people as replacements—they tend not to create new jobs.
Today I’ve learned that over the past decade, start-ups have specifically been the largest net, new job creators. Yet, in the US. that is exactly the group that will be hurt most if the proposed new tax reductions take effect. These are the firms that have not been able to secure large amounts of loans from cautious banks nor are they yet generating huge profits.
From a consulting standpoint it’s a lesson in the need to examine adverse consequences of any decision, and to prevent them, mitigate them, of find another alternative entirely. Helping large corporation which generate no net, new jobs and hurting start-ups that do is not a way to stimulate the economy.