Issues about small business essay

This week’s discussion asks to analyze one article found in a periodical (for example, Wall Street Journal) related to the course content, and discuss how the article is related to the course material. We analyze different types of businesses and organizations, examine business issues and their influence, and I think the issues about small businesses require a lot of attention. I selected the article “Most Small Businesses Create Fewer Than One New Job a Year, Study Finds” (2017) by Ruth Simon. I think the topic of employment growth is related to the course content, and the title of the article provides valuable insights into the current small businesses situation and where new jobs come from. I think Simon’s article not only provides good food for thought regarding unsteady employment growth but also helps us better understand the continuing economic issues facing many small firms.

The author states that most small businesses experience slow employment growth (fewer than one full-time position a year) and leaders often meet economic difficulties. Study after study has analyzed the current employment situation and examined payroll records for more than 45,000 small businesses that were bank customers. As evidence shows, “about 16% of small firms lost the equivalent of the one full-time employee and just 20% added more than two full-time positions.” (Simon, 2017) The current economic situation shows that most small businesses employ only a few workers which cause challenges, firm instability, and unpredictable effects. According to the J.P. Morgan Chase Institute, young businesses showed significant instability regarding payroll spending and employment. The executives have explained the employment reality and pointed out that “most small firms do not have a steady flow of customers and a steady form of revenue.” (Simon, 2017) In other words, small businesses just have profit periods and loss periods, and because of this instability and messy processes, most small firms cannot afford to keep extra employees on staff.

Works cited:

Simon, Ruth. “Most Small Businesses Create Fewer Than One New Job a Year, Study Finds”.            Wall Street Journal, Jan. 18, 2017. Accessed Feb. 14, 2017 <wsj.com/articles/most-        small-businesses-create-fewer-than-one-new-job-a-year-study-finds-1484737200>