Learn More: Jobs by Firm Size

Metadata

Variable Definitions:
Small Enterprise Jobs: The number of jobs at private-sector firms with 0-19 employees 
Mid-Size Enterprise Jobs: The number of jobs at private-sector firms with 20-249 employees
Large Enterprise Jobs: The number of jobs at private-sector firms with 250+ employees
Total Jobs: The total number of jobs in a given area


Source:
LEHD Origin-Destination Employment Statistics
Years Available:
2011 - 2017
Geographic Unit:
Census Tract

Why are these Variables Important to Measure?

The size of a firm has implications for both business owners and employees. According to a 2011 report, small businesses were responsible for 65 percent of new jobs created from 1992-2009 (Council of Economic Advisers, 2011). However, small businesses are more sensitive to fluctuations in the economy than larger firms. A Kauffman Foundation study found that while startups created over 3.1 million jobs in 2000, by 2005 half of the firms had failed (Kane, 2010). This sensitivity is partly due to the inequities in access to credit and capital between large and small firms. Information asymmetries between small business owners and financial institutions limit the flow of venture and growth capital available to small businesses. Understanding the number of small businesses within a given area can be useful for policymakers and financial institutions seeking to form small business investment programs.
Firm size also has a relationship with access to affordable health insurance for employees. In 2018, 97% of firms with 50 or more employees offered health insurance to employees while only 30% of employees at small firms had access to employer based health insurance (Agency for Healthcare Research and Quality, 2018).  

Sources
“Medical Expenditure Panel Survey Private Sector Insurance Component, Table II.A.2. Agency for Health Care Research and Quality, Center for Financing, Access and Cost Trends. 2018. Link
“Economic Report of the President: Supporting America’s Small Business” Council of Economic Advisers. 2011. Link
“The Importance of Startups in Job Creation and Job Destruction” Kauffman Foundation Research Series. 2010. Link
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