Small Businesses in the Pennsylvania Economy
However, the numbers are still very telling, particularly when looking at the Pennsylvania profile versus the US total. A look at the number of business (and total employment) show that the growth is in the number of small employers and nonemployers (i.e. self-employment and independent contractors). It also shows that Pennsylvania lagged behind the US.
Looking at the number of employees by firm size is even more telling. Small employers (those with less than 500 employees) now employ over half of all workers, both in Pennsylvania and nationally. Furthermore, all of the job growth occurred in small businesses; large employers lost workers from 2002-05, both in PA and the US. This finding adds greatly to the discussion of “creative destruction” in the economy.