This study, by economists at Yale University and University of Bristol, finds that in times of high unemployment, small businesses both retain and create more jobs than large firms do. During the recession of March 2008 to March 2009, for instance, the employment growth rate of large employers fell percent more than the growth rate of small employers, compared with the previous year. In every other recession and recovery in the study’s sample, large firms took years to recover relative to small firms. The authors use data on . businesses spanning 1979-2009, and find that this correlation remains consistent across a variety of measures, including age of the firm, excluding entering and exiting firms, and within broad industries. They also examine Denmark, France, the , and Canada, and find that their conclusion holds in other countries of different sizes. “Large employers on net destroy proportionally more jobs relative to small employers when unemployment is above trend, late in and right after a typical recession” the authors write. “Overall, this picture corroborates in part the common wisdom that small businesses are the engine of job creation: small firms appear to create more jobs as a fraction of their employment only when unemployment is high (which is, arguably, when jobs are most needed).”
Edition 10 : As a result of carefully reading the Case Study, students should be able to: understand the importance of a mission statement, and know that Argos’ mission statement focuses on giving customers value for money by providing them with a convenient shopping experience, explain why segmentation helps an organisation to identify and meet the needs of customers and understand how frequency of visitors to an Argos store or site is a good way of segmenting customers, know what is meant by a growth strategy and give a brief explanation of how Argos is seeking to grow.