Thomas Campenni, who claims to be a small business owner, has a humorous and contrarian take on small business job creation:
The myth, we hear from our candidates, is that as small business people we are going to add jobs to the economy, that we are the job creators. It has and continues to be my firm belief that hiring additional employees is the last thing any smart small business person wants to do. I would much rather work harder and keep that person’s salary. I would much rather spend money on technology to be more efficient. A robot or computer program never walked out or didn’t come into work. Small businesses are not Fortune 500 companies. A small business owner has no bruised ego with not having thousands of employees under him. It might sound good to say I own a company that has 10 employees but I would rather have 5 employees and have more money in my pocket. That is the only way I will ever have a raise.
My only disagreement is that I have encountered many small business owners who really do seem to be in it because they enjoy having employees to boss around, but they tended to be poorly run and unprofitable.
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I am also reminded of the contention of Richard Koch, the author of the book The 80/20 Principle, that 80% of work done in a corporate environment is a waste, and the key to small business success is that by only doing the 20% important work, when you start your own business you are able to do the work of five employees of a big business all by yourself, and that’s the key to being competitive.
So if we want more jobs, then what we want are more inefficient and bureaucratic big businesses and not efficiently-run small businesses.