Small firms, widely believed to promote job growth, both create and eliminate jobs at higher rates than large firms do. Although small firms account for a disproportionate share of net job growth, that greater growth is driven primarily by new small firms.
|Firm Size, by Employee Count||Change in the Number of Workers Between December 2007 and December 2010|
|Fewer than 50 workers||-7.1 percent|
|50 to 499 workers||-8.1 percent|
|500 or more workers||-5.4 percent|
Policies that help reduce the cost to small firms of complying with federal regulations could promote employment growth. But policies favoring small firms could also discourage them from growing in order to retain that preferential treatment. Moreover, easing some regulations for small firms could cause certain problems, such as pollution, to persist more than if regulations were applied uniformly across firms of different sizes.
Small firms receive more favorable treatment than larger firms through: