We all know small businesses are integral to the economy. However, Goldman Sachs reports that small businesses have been struggling to grow and to provide the jobs important to middle class America.
The report, entitled “The two-speed economy” submits there are “an estimated 600,000 ‘missing’ small firms, and six million (missing) jobs associated with these firms, as of 2012.” This is compared to the amount of small firms and jobs created during past economic rebounds.
The report also comes to the troubling conclusion that willingness to start a business as the sole-proprietor has been particularly weak. Starting one’s own business is the typical direction the talented take after they are laid off, or if their current job does not meet their needs.
The U.S. Chamber says there is no “definitive reason” to explain this trend, but they assert that it can be attributed to the “avalanche of regulations imposed on our nation’s small businesses.” They explain that small businesses are least able to cope with the immense burdens of government regulations, and the “resulting burdens of compliance and implementation.”