The Role Of Small
The Role Of Small Business In Economical Development
1.Department of Management , Baghmalek branch, Islamic Azad University, Baghmalek, Iran
Abstract:Economic development experts are abandoning traditional approaches to economic developments that rely on recruiting large enterprises with tax breaks, financial incentives, and other inducements. Economic development is the process of building strong, adaptive economies. Strategies driven by local assets and realities, a diverse industry base and a commitment to equality of opportunity and sustainable practices have emerged as those that will ensure a strong foundation for long-term stability and growth. In this article we define the small business after we explain small business and job creation and job quality and the innovation rol in small business This analysis evaluated the economic development role of small businesses. It suggests that small businesses may not be quite the fountainhead of job creation they are purported to be, especially when it comes to high-paying jobs that are stable and offer good benefits. Big-firm jobs are typically better jobs. Moreover, while small businesses are important innovators in today’s economy, so are large businesses. There is no clear evidence that small businesses are more effective innovators. This article concludes that it probably does but with some caveats. Small businesses are potent job creators, but so are large businesses. The attribution of the bulk of net job creation to small businesses arises from relatively job losses at firms, not to especially robust job creation by small firms. More importantly, data show that, on average, large businesses offer better jobs than small businesses, in terms of both compensation and stability.
[ Masoud Hamzehpour. The Role Of Small Business In Economical Development. Life Sci J 2013;10(1):1668-1675] (ISSN:1097-8135). http://www.lifesciencesite.com.
Key Words: Economical Development, small business