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They've always said that entrepreneurship is the "key driver of growth"

In fact, an SBA study shows that there is a "positive relationship between entrepreneurship and regional economic growth" as the birth of new firms (most of which are small businesses) are key indicators of the region's competitive advantage
http://www.sba.gov/advo/research/rs256tot.pdf

In fact, the data shows that

Small firms
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay more than 45 percent of total U.S. private payroll.
• Have generated 60 to 80 percent of net new jobs annually over the last decade.
• Create more than 50 percent of nonfarm private gross domestic product (GDP).
• Supplied more than 23 percent of the total value of federal prime contracts in FY 2005.
• Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.
• Are employers of 41 percent of high tech workers (such asscientists, engineers, and computer workers).
• Are 53 percent home-based and 3 percent franchises.
• Made up 97 percent of all identified exporters and produced 28.6 percent of the known export value in FY 2004.


Sources: U.S. Bureau of the Census; Advocacy-funded research by Joel Popkin and Company (Research Summary #211); Federal Procurement Data System; Advocacy-funded research by CHI Research, Inc.(Research Summary #225); Bureau of Labor Statistics, Current Population Survey; U.S. Department of Commerce, International Trade Administration.
http://app1.sba.gov/faqs/faqindex.cfm?areaID=24

2006-11-05 22:13:30 · answer #1 · answered by imisidro 7 · 0 0

Yes they are a solution to our economic problems. But they may not be completely, because the country still needs governmental organisations for the provision of goods and services in high scale, and other multinational organisations, such as public limited companies. however one cannot dispute the value of one man business. because of the various advantages it has to our great country such as:
1. it provides employment to about 90% of those who are unemployed.
2. It provides goods and services in great quantities.
3. It gives citizens (owners) in a capitalist system which our great country is a part of, control, which allows for maximum independence to the government.
4. It increases the value of money since about 30% exports are done by enterprenours.
5. It allows for varieties of production of goods and services.

2006-11-05 22:12:09 · answer #2 · answered by Nnamsco 3 · 0 0

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