Wednesday, April 3, 2013

Large companies in the US have grown faster than small companies


http://www.businessweek.com/articles/2013-04-03/large-companies-have-grown-faster-than-small-ones


According to the article, ever since the recovery from the recession, large companies have grown faster than small companies. The big companies have, on average, incrased employment by 7.5% compared 4.9% increase by small businesses. 
There are 3 main reasons for this: 1. Most construction companies are small businesses. They suffered greatly in the housing market crash and are still struggling, 2. The big companies had greater cash reserves to face the huge credit crunch which followed the recession. Therefore, they were not hurt so badly, 3. Big companies also cater to international markets and since the value of the USD declined, it helped in increase of exports. 

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