Small Business will Drive Economic Recovery

The economic news continues to be mixed, underscoring the high level of uncertainty among businesses and job seekers.

In a Special Report published May 18, TD Bank Financial Group says that small businesses will reclaim their place as the driver of economic growth. A few of their findings:

  • The Great Recession was particularly hard on small and medium sized companies.
  • Real estate dependent industries and companies were particularly hard hit.
  • The recovery is beginning to broaden beyond manufacturing.
  • Small and medium sized enterprises will drive the rebound.

In contrast is a piece titled “Bumps on the Road”┬áin the June 4 Wall Street Journal citing a jump in jobless numbers to 9.1% and how the labor participation rate has dropped dramatically since 2000 after three decades of growth. They say this is an important indicator of how people view the economy and the job market.

The fact that the economic news is rife with these types of contradictory reports illustrates the high level of uncertainty people have, particularly job creators, i.e. businesspeople. Nothing kills investment and job creation like uncertainty. The discord and uncertainty pulsing out of D.C. at the moment aren’t particularly helpful. The sooner policymakers sort out their differences and signal stability, the better.