April 16, 2007 -- Small businesses generate fully half of private-sector gross domestic product, the Small Business Administration's Office of Advocacy reported on Monday.
In a recent study of 16 major industrial sectors, the share of GDP accounted for by small employers held steady at 50 percent over a seven-year period, ranging from 18 percent in the information sector to 85 percent in other services, the agency said.
The results confirm the importance of smaller businesses to economic growth, said Chard Moutray, the agency's chief economist. "It makes clear that economic policy needs to take into account the needs of small businesses, because those drive our economy," Moutray said in a statement.
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