The Difference Between Small Business and Entrepreneurs
The dialogue about job creation in the US and the role of high-growth entrepreneurs has often been overshadowed by rhetoric about small businesses. Here in Maine, you often hear about the large number of small businesses in our economy, and how they are the lifeblood of Main(e) Street. A new study by two University of Chicago professors on small businesses yields some illuminating information. The authors, Eric Hurst and Benjamin Pugsley, found that most small businesses start out small, stay small, and are very happy being small. Or, stated another way, most small businesses in the US are people trying to make a living, not become the next Microsoft or Google. They generally have no desire to innovate, or bring new products to market. So, entrepreneur ≠ small businessperson. We need policies that support entrepreneurs rather than small business per se if we want to see job growth. The article can be read here.