“How we treat small business needs to be reevaluated in light of the accumulating evidence about its role in job creation” (Bee, 2004). Small businesses have generated sixty-four percent of new jobs over the past fifteen years. Over the past twenty-five years, they have generated sixty-seven percent of new jobs. Wherever the small business is located, it provides new job opportunities for the families seeking employment in the area. The creation of these jobs is greatly accepted throughout the entire community. Bee concludes that small businesses have higher survival rates than most people assume:
Longitudinal research by the Small Business Administration concludes that two-thirds of small businesses survive for two years and about fifty percent survive for four. As researchers evaluated the longitudinal data, they concluded that these figures overstate the failure rate for small businesses since many closures are due to 1, mergers into larger firms or 2, voluntary closures by the owners who take a new job or otherwise terminate a profitable venture. If one makes adjustments for this cohort, the overall failure rate becomes twenty-four percent after two years and thirty-five percent after four years.
Therefore, the jobs are still available for the most part. “The failure rate for small businesses varies with industry” (Bee, 2004). If there is no demand for a certain product or service in a specific area, a small business offering that certain product or service most likely will not exist in that specific area. Since it is likely to fail, citizens would not want to work for a small business industry not desired by the