Friday, October 26, 2007

Small Business Growth: Searching for Stylized Facts

"Small Business Growth: Searching for Stylized Facts" is an Office of Advocacy working paper by Brian Headd and Bruce Kirchhoff. The authors analyzed data from special tabulations of the U.S. Census Bureau’s Statistics of U.S. Businesses (SUSB) database. The SUSB data provided information on how firms started, grew, merged, declined, survived, and closed from 1992 to 2002. The authors found that growing firms are generally a constant share of the economy with a minor business cycle effect, firms with employment growth outnumber firms with employment decline, and fast growing firms in a given year tend to revert to the mean in later years.

A full copy of this report is available here in a PDF, and the research summary can be found here (PDF). Should you need further information, please feel free to contact Brian Headd at (202)
205-6533 or

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